Market portfolio contains only unsystematic risk, therefore market risk premium represents the return that investors require to be compensated for, taking an average amount of relevant, or unsystematic, risk.
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Q2: For an investment in a stock, the
Q3: A stock might be quite risky if
Q5: The relevant risk, the risk for which
Q6: The greater the variability of the possible
Q7: The probability distribution of the payoffs on
Q8: Risk is indicated by variability, whether the
Q9: A stock's standard deviation determines how the
Q10: The standard deviation is calculated as the
Q69: Systematic risk is diversifiable, so it is
Q75: Market risk refers to the tendency of
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