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ss7ja [257]
2 years ago
6

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

Business
1 answer:
Ahat [919]2 years ago
5 0

The systematic risk principle states that the expected return on a risky asset depends only on the asset’s <u>market </u>risk.

<h3>What are systematic risk principles?</h3>

According to the systemic risk concept, the expected return on an asset is solely determined by its systematic risk. As a result, regardless of how much overall risk an asset carries, just the systematic part is significant in estimating the expected return (including risk premium) on such asset.

Market risk is a kind of systematic risk that affects the entire market. Because it cannot be diversified and distributed, the investor is compensated for it.

Learn more about systematic risk principles here:

brainly.com/question/25821437

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Learn more about systematic risk principles here:

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