Market Risk

question 12

Multiple Choice

Market risk

• A)can be eliminated through diversification.
• B)represents the risk generated through chance events affecting a single company.
• C)cannot be eliminated through diversification.
• D)is another name for idiosyncratic risk.

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Definitions:

Social Allergy Effect

A phenomenon where repeated exposure to a small irritating behavior in a close relationship leads to an increasingly larger annoyance or distress.

Annoyed

Feeling bothered, irritated, or displeased.

Nail Biting

A common nervous habit where an individual bites their fingernails or the surrounding skin, often a response to stress or anxiety.

Income

Income refers to the money that an individual or business receives in exchange for providing a good or service or through investing capital.