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Which of the following statements regarding Capital Asset Pricing Model is True? Select one: a.The diversifiable risk is compensated by a higher expected return. b.The

Which of the following statements regarding Capital Asset Pricing Model is True?

Select one:

a.The diversifiable risk is compensated by a higher expected return.

b.The portion of an asset's risk attributable to factors that affect all firms is called systematic risk.

c.A portfolio that consists of any two stocks can eliminate all diversifiable risk.

d.The systematic risk only affects small capitalization stock.

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