Non diversifiable risk is measured by beta the risk premium


Which of the following statements concerning risk are correct?

I. Non diversifiable risk is measured by beta.

II. The risk premium increases as diversifiable risk increases.

III. Systematic risk is another name for non diversifiable risk.

IV. Diversifiable risks are market risks you cannot avoid.

I and III only.

II and IV only.

I and II only.

III and IV only.

I, II, and III only.

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Financial Management: Non diversifiable risk is measured by beta the risk premium
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