Unsystematic risk:

Select one:

a. can be effectively eliminated by portfolio diversification.

b. is compensated for by the risk premium.

c. is measured by beta.

d. is measured by standard deviation.

e. is related to the overall economy.

Asset G has a beta of 0.5. The risk-free rate of return is 7 percent, while the return on the market portfolio of assets is 12 percent. The asset's required rate of return is

Select one:

a. 5.4 percent

b. 10.6 percent

c. 13.4 percent

d. 9.5 percent