According to the Capital Asset Pricing Model (CAPM) a well diversified portfolio's rate of return is a function of
A)market risk.
B)unsystematic risk.
C)unique risk.
D)reinvestment risk.
E)None of the options

Question

Quizplus · Accepted Answer

With a diversified portfolio, the only risk remaining is market, or systematic, risk.This is the only risk that influences return according to the CAPM.

According to the Capital Asset Pricing Model (CAPM) a Well