Q.
1
  • A

    Systematic risk is unavoidable; this is the contribution of an individual asset to the risk of market portfolio.

     

  • B

    Systematic risk is avoidable by an investor, and it can be eliminated by diversification.

     

  • C

    The level of systematic risk in an asset cannot be measured by the beta coefficient.

  • D

    The expected return-beta relationship is referred to as Systematic Market Line (SML).