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Which of the following is the best definition of unsystematic risk A) A theory showing that the expected return on any risky asset is a
Which of the following is the best definition of unsystematic risk
A) A theory showing that the expected return on any risky asset is a linear combination of various factors.
B) A risk that affects at most a small number of assets. Also called unique or asset-specific risks.
C) A risk that influences a large number of assets. Also called market risk
D) Positively sloped straight line displaying the relationship between expected return and beta.
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