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NACVA Exam CVA Topic 4 Question 111 Discussion

Actual exam question for NACVA's CVA exam
Question #: 111
Topic #: 4
[All CVA Questions]

The fundamental of CAPM is:

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Suggested Answer: A

by Lauran at Jun 10, 2025, 08:33 PM

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Stefania
2 months ago
Haha, unsystematic risk? What is this, a joke question? Everyone knows CAPM is all about systematic risk, so A is the right choice.
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Dannie
1 months ago
Yeah, unsystematic risk is not a factor in CAPM. A is the way to go.
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Ivory
1 months ago
I agree, A is definitely the correct choice.
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Dick
2 months ago
I'm not sure, but I think it's between A and C.
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Cassi
2 months ago
This is a classic CAPM question. The fundamental idea is that the market portfolio is the one with the highest Sharpe ratio, so the risk premium has to be a function of systematic risk. Option A is the correct answer.
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Marya
2 months ago
I agree with Margery, systematic risk is a key factor in CAPM.
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Rikki
2 months ago
CAPM definitely says that systematic risk is what determines the risk premium, not unsystematic risk. Option A is the way to go here.
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Thaddeus
22 days ago
Systematic risk is definitely the key factor in determining the risk premium.
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Thaddeus
1 months ago
I agree, option A is correct.
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Margery
2 months ago
I think the answer is A.
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