According to the CAPM, _____.

A. ?investors should expect to be rewarded for the total risk associated with an individual investment, total risk being measured by the standard deviation of returns
B. ?investors should expect to be rewarded for only the unsystematic risk associated with an individual investment, unsystematic risk being measured by the standard deviation of returns
C. ?investors should expect to be rewarded only for the systematic risk associated with an individual investment, systematic risk being measured by the standard deviation of returns
D. ?investors should expect to be rewarded for only the unsystematic risk associated with an individual investment, unsystematic risk being measured by the beta coefficient
E. ?investors should expect to be rewarded for only the systematic risk associated with an individual investment, systematic risk being measured by the beta coefficient


Answer: E

Business

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