Company specific risk premium

CFA Level II Equities
#1

Confused on the term Company specific risk premium. THe book sates that this is unsystematic risk cannot be diversified away, however, wouldnt company specific risk be allowed to be diversified away by adding more companies? And thus u would not be compensated for this type of risk.

Systematic risk is non diversfiiable and you should be compensated for this, correct?

#2

Hi there, may I know which book and which chapters did you see this? company specific risk is mentioned a few times and would like to know the context.

Thanks.