Capital asset pricing theory suggests that ____ risk of projects can be ignored and that ____ is relevant.
A) unsystematic; unsystematic
B) unsystematic; systematic
C) systematic; unsystematic
D) systematic; systematic

Question

Quizplus · Accepted Answer

Capital asset pricing theory posits that unsystematic risk can be diversified away, so only systematic risk, which affects the entire market, is relevant for pricing assets.

Capital Asset Pricing Theory Suggests That ____ Risk of Projects