The expected return on an individual asset depends only on that asset's ____ risk.
A) Total.
B) Incremental.
C) Systematic.
D) Unsystematic.
E) Portfolio.

Question

Quizplus · Accepted Answer

The expected return on an individual asset depends only on that asset's systematic risk, which is the risk inherent to the entire market or market segment. Systematic risk, also known as market risk, cannot be eliminated through diversification.

The Expected Return on an Individual Asset Depends Only on That