Why is the risk premium of a security determined only by its systematic risk?

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Corporate Finance

ISBN: 9781292446318

6th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Apr 04, 2024 04:00 AM

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Why is the risk premium of a security determined only by its systematic risk?

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The risk premium of a security is primarily determined by its systematic risk because systematic risk also known as market risk or undiversifiable ris...View the full answer

Corporate Finance

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