The cost of capital is related to the

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Quizplus · Accepted Answer

The cost of capital is related to the systematic risk, which is the risk associated with the entire market or economy. This is because the cost of capital is the return that investors require for taking on the risk of investing in a particular company or project, and this return must reflect the level of systematic risk. The other choices, unsystematic risk, firm-specific risk, and unique risk, are all forms of risk that are specific to an individual company or project, and therefore do not directly affect the cost of capital for most investors.

The Cost of Capital Is Related to the