In the CAPM, the only source of systematic risk is

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The CAPM assumes that the only source of systematic risk is the overall movement of the stock market or stock model. This is represented by the market portfolio, which is the portfolio consisting of all assets in proportion to their market value. All other sources of risk, such as changes in government policy, inflation rates, and foreign exchange rates, are considered to be unsystematic or idiosyncratic risks that can be diversified away.

In the CAPM, the Only Source of Systematic Risk Is