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...
Diversifiable risk is also called: a) Diversifiable Return b) Systematic risk c) Unsystematic risk d) All of the above
Question 12 What does the beta measure? systematic risk diversifiable risk. company-specific risk. unsystematic risk.
What type of risk can never be diversified away? systematic risk unsystematic risk total risk All of the above
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
Standard deviation measures _____ risk while beta measures _____ risk. systematic; unsystematic unsystematic; systematic total; unsystematic total; systematic asset-specific; market
What type of risk can be eliminated in a well diversified portfolio? unsystematic market undiversifiable systematic
Beta measures a security's sensitivity to _________. Multiple Choice a) diversifiable risk b) firm-specific risk c) unique risk d) market risk
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
Question 19 1 pts A well-diversified portfolio is most likely to have: Both, systematic and unsystematic risk Only systematic risk Only unsystematic risk
Which risk will be priced? A. Total risk B. systematic C. unsystematic risk?