Systematic risk and unsystematic risk


Question1. The t-bill return is employed in the CAPM model as risk rate? True or false

Question2. Total risk equals systematic risk plus unsystematic risk? Answer in true or false

Question3. Perpetuity is an investment which continues forever but pays a different dollar amount per year? True or false

Question4. The same underlying formula is employed for computing both the future value as well as present value? True or false

Question5. If you invest $750 every six months at 8 percent compounded semi-annually, how much would you gather at the end of 10 years?

a:$10,065
b:$10,193
c:$22,334
d:$21,731

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Financial Accounting: Systematic risk and unsystematic risk
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