Asked by Chloe Cluchey on Jul 14, 2024
Verified
The expected return on an individual asset depends only on that asset's ____ risk.
A) Total.
B) Incremental.
C) Systematic.
D) Unsystematic.
E) Portfolio.
Systematic Risk
A type of risk that is associated with the overall market or a particular market segment, often called market risk.
Expected Return
The average amount of profit or loss one can anticipate receiving on an investment, accounting for all possible outcomes.
Incremental Risk
The additional risk that an investment or action brings to an investor's or company's overall risk profile.
- Comprehend the correlation between the anticipated return of an asset and its inherent risk.
Verified Answer
Learning Objectives
- Comprehend the correlation between the anticipated return of an asset and its inherent risk.
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