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Which one has the most unsystematic risk

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Reference no: EM131732625

Qusetion: Systematic versus Unsystematic Risk. Consider the following information on Stocks I and II:

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The market risk premium is 7 percent, and the risk-free rate is 4 percent. Which stock has the most systematic risk? Which one has the most unsystematic risk? Which stock is "riskier"? Explain.

Reference no: EM131732625

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