Question: 4 . Rita Schnetzer, CAIA is studying expected returns and the factors on which they depend. Schnetzer specifically is studying systematic and idiosyncratic risks. Which
Rita Schnetzer, CAIA is studying expected returns and the factors on which they depend. Schnetzer specifically is
studying systematic and idiosyncratic risks. Which would be the most accurate statement regarding systematic risk?
Group of answer choices
Systematic risk is the dispersion in economic outcomes caused by variation in systematic returns.
Systematic risk has three determinants, including the macro economy, the size of the firm, and the industry.
Systematic risk is the dispersion in economic outcomes caused by investmentspecific factors.
Systematic risk is diversifiable risk.
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