question archive a) Describe the systematic and nonsystematic risk components of the following assets: - A risk-free asset, such as a three-month Treasury bill - The market portfolio, such as the S&P 500, with total risk of 25 percent b
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a) Describe the systematic and nonsystematic risk components of the following assets:
- A risk-free asset, such as a three-month Treasury bill
- The market portfolio, such as the S&P 500, with total risk of 25 percent
b. Consider two assets, A and B. Asset A has total risk of 28 percent, half of which is nonsystematic risk. Asset B has total risk of 18 percent, all of which is systematic risk. Which asset should have a higher expected rate of return?
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