The systematic risk principle states that the expected return on a risky asset depends only on the asset's ___ risk.
A)unique
B)diversifiable
C)asset-specific
D)market
E)unsystematic

Question

Quizplus · Accepted Answer

The systematic risk principle states that the expected return on a risky asset depends only on its market risk, which is the risk inherent to the entire market or market segment.

The Systematic Risk Principle States That the Expected Return on a Risky