Question

What does the Capital Asset Pricing Model (CAPM) focus on in terms of risk?

a.

Only Diversifiable risk

b.

Both Diversifiable and Non-diversifiable risk

c.

Only Non-diversifiable risk

d.

No consideration of risk

Answer: (c).Only Non-diversifiable risk Explanation:The CAPM Model is only concerned with non-diversifiable risk, also known as systematic risk.

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Q. What does the Capital Asset Pricing Model (CAPM) focus on in terms of risk?

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