The CAPM shows that the expected return for a particular asset depends on the amount of unsystematic risk.

Name: The CAPM shows that the expected return for a particular asset depends on the amount of unsystematic risk.
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The Capital Asset Pricing Model (CAPM) shows that the expected return on an asset depends on its systematic risk (market risk), not its unsystematic risk (specific risk), as unsystematic risk can be diversified away.

The CAPM Shows That the Expected Return for a Particular