The Systematic Risk Principle States That the Expected Return on a Risky

question 41

Multiple Choice

The systematic risk principle states that the expected return on a risky asset depends only on the asset's ___ risk.

• A)unique
• B)diversifiable
• C)asset-specific
• D)market
• E)unsystematic

---

Definitions:

Social Network

A network of social interactions and personal relationships or a platform that facilitates these interactions online.

Widowed

Refers to the state of having lost one's spouse through death.

Contingency Contracts

Agreements between two or more parties where specific outcomes or behaviors trigger pre-agreed consequences or rewards.

New Behavior

Refers to actions or patterns of activity that are different from previous behaviors, often in response to changes in the environment or learning.