Systematic risk that can be diversified away. The appropriate measure for investment risk according to the capital asset pricing model is a. The standard deviation of a firm s cash flows. The coefficient of variation. None of the above.
Beta is a statistical measure of a. unsystematic risk b. total risk c.
The minimum rate of return necessary to attract an investor to purchase or hold a security is referred to as the a. stock s beta b. investor s risk premium c. investor s required rate of return d. risk-free rate e. coupon rate 33. Through diversification, investors can eliminate a.