The Risk Premium of a Security Is Determined by Its

question 71

Multiple Choice

The risk premium of a security is determined by its ________ risk and does not depend on its ________ risk.

• A)systematic,undiversifiable
• B)systematic,unsystematic
• C)diversifiable,diversifiable
• D)diversifiable,unsystematic
• E)unsystematic,diversifiable

---

Definitions:

Subscapularis

A muscle located beneath the scapula, assists in the rotation and adduction of the arm.

Rotator Cuff

A group of muscles and tendons that surround the shoulder joint, keeping the head of your upper arm bone firmly within the shallow socket of the shoulder.

Shoulder

A joint that connects the upper arm to the torso, allowing for a wide range of movement.

Knee

The joint that connects the thigh with the lower leg, encompassing the intersection of the femur, tibia, and patella.