[单选题]The capital asset pricing model approach to equity valuation: A. is dependent upon the unsystematic risk of a security. B. assumes the reward-to-risk ratio increases as beta increases. C. can only be applied to dividend-paying firms. D. assumes a firm's future risks will be higher than its current risks. E. assumes the reward-to-risk ratio is constant. Difficulty: 1 Easy Topic: Cost of equity Learning Objective: 14-01 Determine a firm's cost of equity capital.