The cost of capital is O the rate of return required by investors in the firm's securities the minimum rate of return required on new investments of high risk undertaken by the firm approximately 10 percent for most firms concerned with plant and equipment only 3 pts Question 2 which is The CAPM assumes that the only risk of concern to the investor is measured by Unsystematic risk; beta Systematic risk; the return to the market portfolio Systematic risk; beta Unsystematic risk: the return to market portfolio