Unsystematic risk can be defined by all

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1. Stock J has a beta of 1.52 and an expected return of 15.76percent. Stock K has a beta of .98 and an expected return of 11.44 percent. What is the risk-free rate if these securities both plot on the security market line?

a. 3.60 percent b. 3.34 percent c. 3.57 percent d. 3.52 percent e. 3.64 percent.

2. Unsystematic risk can be defined by all of the following except:

a. unrewarded risk. b. diversifiable risk. c. market risk. d. unique risk. e. asset-specific risk.

Reference no: EM131451967

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