Question content area

Part $1$

Regarding$$ risk, wich one of the following statements is$$ true?

A$.$

In any$$ investment, taking risk is necessary to earn returns

B$.$

Systematic risk can be reduced if an investor holds just one stock instead of a portfolio

C$.$

Total risk includes two$$ components, systematic risk and diversifiable risk.

D$.$

According to$$ CAPM, an$$ asset's required return is a compensation for its diversifiable risk.