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Total Risk = Systematic Risk + Unsystematic Risk formula

a) Beta Formula
b) Capital Asset Pricing Model (CAPM)
c) Modern Portfolio Theory (MPT)
d) Variance Formula

User Ubuntuuber
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1 Answer

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Final answer:

The formula for total risk is Total Risk = Systematic Risk + Unsystematic Risk. The CAPM (Capital Asset Pricing Model) is a formula used to determine the expected return on an investment based on its beta.

Step-by-step explanation:

The formula for total risk is Total Risk = Systematic Risk + Unsystematic Risk. The CAPM (Capital Asset Pricing Model) is a formula used to determine the expected return on an investment based on its beta, which is a measure of systematic risk. Therefore, the correct answer to the question would be b) Capital Asset Pricing Model (CAPM).

User Davidjb
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