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Assume Badger Championship, LLC has a CAPM beta of 0, the risk free rate is 1.0%, and the expected return on the market portfolio is

Assume Badger Championship, LLC has a CAPM beta of 0, the risk free rate is 1.0%, and the expected return on the market portfolio is 8.2%. You also know that Badger Championship, LLC has a standard deviation of 38.2%. Given its standard deviation and its beta, what do you know about the risk of investing in Badger Championship?

a.Badger has high systematic risk

b.Badger has high idiosyncratic risk

c.Badger has zero total risk

d.Badger has high non-diversifiable risk

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