The greater the degree of systematic risk,the:
A) higher the expected share price.
B) higher the expected rate of return.
C) lower the expected return on a share.
D) closer a share's beta will be to 1.

Question

Quizplus · Accepted Answer

The greater the degree of systematic risk, the higher the expected rate of return. This is because investors demand higher returns to compensate for the higher risk associated with systematic risk.

The Greater the Degree of Systematic Risk,the