Ans: unsystematic
Explanation:
Expected return on an asset only depends on systematic risk. Systematic risk is same as market risk, undiversifiable risk and Beta risk.
Thus, the correct answer is unsystematic risk.
Which type of risk is not accounted for while calculating expected returns? ille Beta risk undiversifiable...
Standard deviation measures _____ risk while beta measures _____ risk. systematic; unsystematic unsystematic; systematic total; unsystematic total; systematic asset-specific; market
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Which of the following statements about risk measures is correct? a. Beta is a measure of systematic risk, whereas standard deviation is the measure of total risk. b. Beta is a measure of total risk, whereas standard deviation is the measure of unsystematic risk. c. Beta is a measure of total risk, whereas standard deviation is the measure of systematic risk. d. Beta is a measure of total risk, whereas Standard deviation is the measure of systematic risk. e. Beta...
TOISRULIUSS. Expected Return = Risk free Rate + beta (expected market return - risk free rate) .04 +0.80.09 - .04) = .08 = 8.0% 3. Suppose the MiniCD Corporation's common stock has a return of 12%. Assume the risk- free rate is 4%, the expected market return is 9%, and no unsystematic influence affected Mini's return. The beta for MiniCD is:
Market beta is a measurement of systematic risk and will affect the expected risk. Group of answer choices: A)True B)False
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Question 12 What does the beta measure? systematic risk diversifiable risk. company-specific risk. unsystematic risk.
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