1. The systematic risk principle states that the expected return on a risky asset depends only on...

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Finance

1.
The systematic risk principle states that the expected return ona risky asset depends only on which one of the following?
Company-specific risk
Diversifiable risk.
Systematic risk
Unsystematic risk
2).
A company's stock has a beta of 1.04, the risk-free rate is4.25%, and the total market return is 9.75%. What is its requiredrate of return?
4.25%
9.97%
11.95%
12.83%
3).
An investor has a $100,000 stock portfolio. $32,000 is investedin a stock with a beta of 0.75 and the remainder is invested in astock with a beta of 1.38. These are the only two investments inhis portfolio. What is his portfolio’s beta?
0.75
1.18
1.29
1.38

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Part 1 Answer Correct answer is systematic risk Expected return on a risky asset depends only on systematic risk also called as market risk according to systematic risk principle Part 2 Answer Correct See Answer

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1.The systematic risk principle states that the expected return ona risky asset depends only on which one of the following?Company-specific riskDiversifiable risk.Systematic riskUnsystematic risk2).A company's stock has a beta of 1.04, the risk-free rate is4.25%, and the total market return is 9.75%. What is its requiredrate of return?4.25%9.97%11.95%12.83%3).An investor has a $100,000 stock portfolio. $32,000 is investedin a stock with a beta of 0.75 and the remainder is invested in astock with a beta of 1.38. These are the only two investments inhis portfolio. What is his portfolio’s beta?0.751.181.291.38

		Company-specific risk
		Diversifiable risk.
		Systematic risk
		Unsystematic risk