According to the Capital Asset Pricing Model

question 7

Multiple Choice

According to the capital asset pricing model

• A)only the systematic component of risk affects the required return
• B)foreign investments whose returns are uncorrelated with the market's return should have a higher required return than comparable domestic investments
• C)total risk of the investment is most relevant for small to medium-sized firms
• D)diversification is secondary to risk levels of the investment

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