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Author Question: The primary conclusion of the CAPM is that the relevant risk of an individual stock is the amount of ... (Read 50 times)

jacob816

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Question 1

The part of a stock’s risk that can be eliminated is called diversifiable risk, which is caused by factors that systematically affect most firms such as war, inflation, recessions, and high interest rates.

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Question 2

The primary conclusion of the CAPM is that the relevant risk of an individual stock is the amount of risk the stock contributes to a well-diversified portfolio. The benchmark for a well-diversified stock portfolio is the market portfolio, which is a portfolio containing all stocks.

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Marked as best answer by jacob816 on Aug 7, 2023

spicyzack

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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jacob816

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)


triiciiaa

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Reply 3 on: Yesterday
Wow, this really help

 

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