Briefly explain why CAPM includes only the systematic risk (beta risk) while ignoring the unsystematic risk.

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Briefly explain why CAPM includes only the systematic risk (beta risk) while ignoring the unsystematic risk.

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Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Posted Date: May 08, 2024 09:08 AM

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Briefly explain why CAPM includes only the systematic risk (beta risk) while ignoring the unsystematic risk.

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Answer Certainly The CAPM is a model used to determine the expected return on an investment based on ... View the full answer

Investments

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