Difficult investors to remove exposure to unsystematic risk

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Reference no: EM131357934

1. Which of the following statements is true?

1. It is very difficult for investors to remove their exposure to unsystematic risk.

2. It is very easy for investors to remove their exposure to systematic risk.

3. It is very easy for investors to remove their exposure to unsystematic risk.

4. Both (a) and (b) are true

5. None of the above statements is true

2. Stock A's stock has a beta of 1.30, and its required return is 12.00%. Stock B's beta is 0.80. If the risk-free rate is 3.50%, what is the required rate of return on B's stock

Reference no: EM131357934

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