The expected return on a security is not affected by the:
A)security's unique risks.
B)risk-free rate.
C)security's risk premium.
D)security's beta.
E)market rate of return.

Question

Quizplus · Accepted Answer

The expected return on a security is not affected by the security's unique risks because these risks are diversifiable and do not contribute to the risk premium, which is based on systematic risk.

The Expected Return on a Security Is Not Affected by The