17. In a well-diversified portfolio, A. unique risk B. market risk C. systematic risk D. systemic risk is negligible. tells us how much systematic risk a particular asset has, relative to an average 18. risky asset. A. gamma B. beta C. alpha D. variance 19. The difference between the expected return on a market portfolio and the risk-free rate is known as: A. market return B. market risk premium C. risk free premium D. reward-to-risk premium: total return premium 20. The security market line displays the relationship between: A. average returns and variance B. expected return and beta C. expected return and total risk D. average return and total risk 21. The CML explains the expected return for: A. all assets B. efficient portfolios C. all real assets D. none of the given answers 22. Any changes to a firm's projected future cash flows that are caused by adding a new project are referred to as which one of the following? A. Eroded cash flows B. Deviated projections C. Incremental cash flows D. Directly impacted flows 23. Which one of the following is NOT a common method for capital budgeting? A. Sensitivity analysis. B. Scenario analysis. C. Break-even analysis. D. Tax shield approach. 24. Scenario analysis is best described as the determination of the: A. most likely outcome for a project. B. reasonable range of project outcomes