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photoshop1234 [79]
3 years ago
13

CAPM says that portfolio returns are best explained by: Group of answer choices Systematic risk Specific risk Economic factors D

iversification
Business
1 answer:
Hunter-Best [27]3 years ago
4 0

Answer:

Systematic risk

Explanation:

According to CAPM,

the expected return = risk free rate + ( beta x market premium)

Beta measures systemic risk

Systemic risk is risk inherent in a market and cannot be eliminated by diversifying portfolio. It is also known as market risk.  

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