Capital Asset Pricing Theory Suggests That ____ Risk of Projects

question 33

Multiple Choice

Capital asset pricing theory suggests that ____ risk of projects can be ignored and that ____ risk is relevant.

• A) unsystematic; unsystematic
• B) unsystematic; systematic
• C) systematic; unsystematic
• D) systematic; systematic

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Definitions:

Standard Deviation

A measure used in statistics to quantify the amount of variation or dispersion of a set of values.

Percentile Rank

A score that indicates the percentage of scores in its frequency distribution that are equal to or below it.

Z-Scores

Statistical measures that indicate how many standard deviations an element is from the mean of a distribution.

Norm Group

A representative sample of the population by which test scores are interpreted and compared.