The following two statements relate to the Capital Asset Pricing Model (CAPM). Choose the correct code for the statements being correct or incorrect. Statement I: Beta is a measure of a security's risk relative to the risk of the market portfolio. Statement II: The value of Beta measures both the systematic and the unsystematic risks of a security.

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General Studies · Capital Asset Pricing Model

Verified Solution4 OptionsUpdated: October 2026👁️1 View

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Correct answer

Statement I is correct, but II is incorrect.

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Answer 1

Statement I is correct, but II is incorrect.

Answer 2

Statement II is correct, but I is incorrect.

Answer 3

Both statements I and II are correct.

Answer 4

Both statements I and II are incorrect.

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