Why, in an efficient capital market, does the cost of capital depend on systematic risk rather than

Question:

Why, in an efficient capital market, does the depend on systematic risk rather than diversifiable risk. Explain your answer using an example from the text.?
Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...