A security's return can be decomposed into the following two parts:
A) Systematic return.
B) Unsystematic return.
C) Historical return.
D) a and b only.
E) b and c only.

Question

Quizplus · Accepted Answer

A security's return can indeed be decomposed into two main parts: systematic return, which is the return attributable to market-wide factors that affect all securities to some extent, and unsystematic return, which is the return attributable to factors specific to an individual security or its issuer.

A Security's Return Can Be Decomposed into the Following Two