Multiple Choice
Which of the following statements concerning risk are correct?
I.Systematic risk is measured by beta.
II.The risk premium increases as unsystematic risk increases.
III.Systematic risk is the only part of total risk that should affect asset prices and returns.
IV.Diversifiable risks are market risks you cannot avoid.
A) I and III only
B) II and IV only
C) I and II only
D) III and IV only
E) I, II, and III only
F) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
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