7016 SM Fri 27 Nov Your answer is correct. The correct answer is: Systematic risk cannot be diversified away of Kuzlon stock returns are 150% more volatile than the market returns. The Indian government bond of 15 years maturity was trading in the market with a market interest rate (ytm) of 7%. The spread between S&P BSE 500 index returns and long term Indian government bond returns was 8%. What is the cost of equity capital for Kuzlon? on Select one: a. 19% b. 27% c. 10% d. 15% X