When working with the CAPM, which of the following factors can be determined with the most precision?   a. The beta coefficient of "the market," which is the same as the beta of an average stock.     b. The beta coefficient, bi, of a relatively safe stock.     c. The market risk premium (RPM).     d. The most appropriate risk-free rate, rRF.     e. The expected rate of return on the market,

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Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.