Diversifiable risk is also called:
a) Diversifiable Return
b) Systematic risk
c) Unsystematic risk
d) All of the above
Systematic risk is also known as market risk it cannot be eliminated through diversification and therefore it is non-diversifiable risk. On the Other hand Unsystematic risk also known as non systematic risk can be eliminated through diversification and therefore it is also called as Diversifiable risk.
Answer C
Diversifiable risk is also called: a) Diversifiable Return b) Systematic risk c) Unsystematic risk d) All...
Marker risk is also called: a. Systematic risk and diversifiable risk b. Systematic risk and unique risk c. Non-diversifiable risk and systematic risk d. Unique risk and non-diversifiable risk
is risk that cannot be diversified away. O A. Diversifiable risk O B. Unsystematic risk O C. Systematic risk O D. Firm-specific risk is risk that cannot be diversified away. O A. Diversifiable risk O B. Unsystematic risk O C. Systematic risk O D. Firm-specific risk
Question 12 What does the beta measure? systematic risk diversifiable risk. company-specific risk. unsystematic risk.
Which risk will be priced? A. Total risk B. systematic C. unsystematic risk?
Standard deviation measures _____ risk while beta measures _____ risk. systematic; unsystematic unsystematic; systematic total; unsystematic total; systematic asset-specific; market
What type of risk can never be diversified away? systematic risk unsystematic risk total risk All of the above
true or false: according to the CPM, the risk for a security with high diversifiable risk and high systematic risk is grater than the risk premium for a security with low diversifiable risk and high systematic risk.
1) Explain the systematic risk and unsystematic risk by using mathematical 3 examples if it is possible 2) create 3 multiple questions and solve it related to systematic risk and unsystematic risk 3) create 3 true/false questions and solve it related to systematic risk and unsystematic risk
QUESTION 23 What does beta measure? a. Unsystematic Risk. b. Systematic Risk. c. Equity Risk Premium. d. Total Risk. QUESTION 24 Which of the following is an advantage of an indexed equity mutual fund as compared to a managed equity fund? a. Indexed funds have lower operating costs because of less stock trading. b. Indexed funds generally have better portfolio managers. c. Indexed funds engage in more research than managed funds. d. Index funds generally have less systematic risk compared...
18. Identify each of the following risks as either systematic risk or diversifiable risk: a. The risk that the CEO of your firm is killed in a plane accident b. The risk that the economy slows, decreasing demand for your firm's products c. The risk that your best employees will be hired away d. The risk that the new product you expect your R&D division to produce will not materialize