Multiple Choice
Jane invests all of her money in the stock of one firm. Which one of the following statements must be true?
A) Jane's stock will have more diversifiable risk than the overall stock market.
B) Jane's stock will have less diversifiable risk than the overall stock market.
C) Jane's stock will have the same amount of diversifiable risk as the overall stock market.
D) There is no basis for comparing the diversifiable risk of Jane's stock to that of the overall market.
Correct Answer:

Verified
Correct Answer:
Verified
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