The market risk premium of an individual security is dependent upon the security's systematic risk.

Name: The market risk premium of an individual security is dependent upon the security's systematic risk.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The market risk premium of an individual security is indeed dependent upon the security's systematic risk, as it reflects the additional return over the risk-free rate that investors demand for bearing this type of non-diversifiable risk.

The Market Risk Premium of an Individual Security Is Dependent