$24.$ The capital asset pricing model $($CAPM$)$ contends that there is systematic and unsystematic risk for an individual securityWhich is the relevant risk variable and why is it relevant? Why is the other risk variable not relevant? This risk can be eliminatedThe unsystematic is relevant because it can be eliminated through diversification Non od the statements are correct when you hold many securitiesthe poor management capability, etc.of some companies will be offset by the below average capability of others in a capital asset model $($CAPM$)$ world the relevant risk variable is the security$\text{'}$s systematic covariance of return with all other risky assets in the market