Fundamental insight of the capital asset pricing model

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Reference no: EM131558558

Which of the following statements best expresses the fundamental insight of the capital asset pricing model?

i. The greater an asset’s unique risk, the greater the asset’s expected return.

ii. The greater an asset’s market risk, the greater the asset’s expected return. i

ii. The greater an asset’s total risk (unique risk plus market risk), the greater the asset’s expected return.

Reference no: EM131558558

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