A security with only diversifiable risk has anexpected return that exceeds the riskfree rate ofreturn. Begin your answer with Consistent orInconsistent followed by your explanation.

Unsystematic risk is another term for diversifiable risk. The risk that may be quantified and…

Answered: A security with only diversifiable risk…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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A security with only diversifiable risk has an expected return that exceeds the riskfree rate of return. Begin your answer with Consistent or Inconsistent followed by your explanation.