1. 

   Khoa Member

   Can someone please explain why the answer is b but not c? I thought only systematic risk is allowed for varying the RDR? assuming the question refers to specific risk?
   many thanks

    

   Khoa, Apr 23, 2020

   #1
2. 

   Lynn Birchall ActEd Tutor Staff Member

   Hi. You're correct that only systematic risk is allowed for in the RDR.
   It's B because there's nothing in the question to suggest its referring exclusively to specific risk.
   
   Best wishes
   Lynn

    

   Lynn Birchall, Apr 23, 2020

   #2

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