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Risks Is Irrelevant To Well-Diversified Investor

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Sandra Watson
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1. Which one of the following risks is irrelevant to a well-diversified investor?

 

unsystematic risk

 

nondiversifiable risk

 

systematic risk

 

market risk

2. The risk-free rate of return is 3.9 percent and the market risk premium is 6.2 percent. What is the expected rate of return on a stock with a beta of 1.21?

 

10.92%

 

12.22%

 

11.40%

 

12.79%

 

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