Question: Unsystematic risk: Multiple Choice O is compensated for by the risk premium. is related to the overall economy. is measured by standard deviation. can be

Unsystematic risk: Multiple Choice O is compensated for by the risk premium. is related to the overall economy. is measured by standard deviation. can be effectively eliminated by portfolio diversification. is measured by beta. Which one of the following should earn the highest risk premium based on CAPM? Multiple Choice O U.S. Treasury bill O Portfolio with a beta of 1.01 O Diversified portfolio with returns similar to the overall market O Stock with a beta of 1.38 O Stock with a beta of 74

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