Multiple Choice
The variance of returns for a risky asset is 25%.The variance of the error term,Var(e) ,is 8%.What portion of the total risk of the asset,as measured by variance,is systematic?
A) 32%
B) 8%
C) 68%
D) 25%
E) 75%
Correct Answer:
Verified
Correct Answer:
Verified
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