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MissTica
3 years ago
7

Which of the following statements concerning risk are correct? I. Nondiversifiable risk is measured by beta. II. The risk premiu

m increases as diversifiable risk increases. III. Systematic risk is another name for nondiversifiable risk. IV. Diversifiable risks are market risks you cannot avoid.
Business
1 answer:
Arturiano [62]3 years ago
4 0

Answer:

i and iii

Explanation:

Nondiversifiable risk or systemic risk is risk that cannot be eliminated by diversifying investments in a portfolio. It is the risk inherent in the industry. it is measured by beta in the CAPM.

Diversifiable risks are risks that can be avoided by diversifying investments in a portfolio. It is also known as business risk

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