Risk factors that are expected to affect only a specific firm are referred to as: risk...
Risk factors that are expected to affect only a specific firm are referred to as:
risk premiums.
diversifiable risk.
systematic risk.
market risk.
Homework Answers
Risk factors that are expected to affect only a specific firm are referred to as Diversifiable Risk
Firm-specific risk can be diversified by investing in a portfolio consisting of different firms from different sectors. Hence they are called Diversifiable Risk.
Answer -> Diversifiable Risk
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Risk factors that are expected to affect only a specific firm
are referred to as:
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. Diversifiab...
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
How diversifiable risk affect opportunity cost of capital associated with a particular firm or investment? I...
How diversifiable risk affect opportunity cost of capital associated with a particular firm or investment? I found the relationship between systematic risk and cost of capital in the textbook, but no explain the influence of diversifiable risk on opportunity cost of capital.
Beta is a measure of ______? - Firm specific risk - Unique risk - Diversifiable risk...
Beta is a measure of ______? - Firm specific risk - Unique risk - Diversifiable risk - Market risk
Risk stemming from factors that would affect most firms, such as war, inflation, recessions and high...
Risk stemming from factors that would affect most firms, such as war, inflation, recessions and high interest rates, is said to be: historical risk diversifiable risk alpha risk correlated risk market risk
Question1 This is defined as the portion of total risk that is not diversifiable firm specific...
Question1 This is defined as the portion of total risk that is not diversifiable firm specific risk O market risk O total risk O modern portfolio risk DI Question 2 4 pts A company has a beta of 3.75. If the market return is expected to be 20 percent and the risk-free rate is 9.5 percent, what is the company's required return? C) 55.625% 39.375% , 48.875% ( 33.25% nativeplayba....collab BlackboardColl....msi nativeplayba....collab 4:
Beta measures a security's sensitivity to _________. Multiple Choice a) diversifiable risk b) firm-specific risk c)...
Beta measures a security's sensitivity to _________. Multiple Choice a) diversifiable risk b) firm-specific risk c) unique risk d) market risk
A stock's beta Select one: a. reflects only the risk factors specific to the company's industry....
A stock's beta Select one: a. reflects only the risk factors specific to the company's industry. b. is not affected by the firm-specific risk factors. c. reflects only the risk factors specific to the company. d. reflects all risk factors.
Which of the following risks of a stock are likely to be firm-specific, diversifiable risks, and...
Which of the following risks of a stock are likely to be firm-specific, diversifiable risks, and which are likely to be systematic risks? Which risks will affect the risk premium that investors will demand? A. The risk that the founder and CEO retires B. The risk that oil prices rise, increasing production costs C. The risk that a product design is faulty and the product must be recalled D. The risk that the economy slows, reducing demand for the firm's...
Market beta is a measurement of systematic risk and will affect the expected risk. Group of...
Market beta is a measurement of systematic risk and will affect the expected risk. Group of answer choices: A)True B)False
Question 12 What does the beta measure? systematic risk diversifiable risk. company-specific risk. unsystematic risk.
Question 12 What does the beta measure? systematic risk diversifiable risk. company-specific risk. unsystematic 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
Risk stemming from factors that would affect most firms, such as war, inflation, recessions and high interest rates, is said to be: historical risk diversifiable risk alpha risk correlated risk market risk
Question1 This is defined as the portion of total risk that is not diversifiable firm specific risk O market risk O total risk O modern portfolio risk DI Question 2 4 pts A company has a beta of 3.75. If the market return is expected to be 20 percent and the risk-free rate is 9.5 percent, what is the company's required return? C) 55.625% 39.375% , 48.875% ( 33.25% nativeplayba....collab BlackboardColl....msi nativeplayba....collab 4:
A stock's beta Select one: a. reflects only the risk factors specific to the company's industry. b. is not affected by the firm-specific risk factors. c. reflects only the risk factors specific to the company. d. reflects all risk factors.
Which of the following risks of a stock are likely to be firm-specific, diversifiable risks, and which are likely to be systematic risks? Which risks will affect the risk premium that investors will demand? A. The risk that the founder and CEO retires B. The risk that oil prices rise, increasing production costs C. The risk that a product design is faulty and the product must be recalled D. The risk that the economy slows, reducing demand for the firm's...
Question 12 What does the beta measure? systematic risk diversifiable risk. company-specific risk. unsystematic risk.
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