Systematic Risk

question 21

Multiple Choice

Systematic risk:

• A) is the standard deviation of a security's return.
• B) is measured with beta.
• C) is measured with standard deviation.
• D) none of the above

---

Definitions:

Marginal Tax Rate

The rate at which the next dollar of taxable income will be taxed.

Operating Costs

Expenses associated with the day-to-day functions of a business, excluding financial costs.

Depreciation

The accounting process of allocating the cost of tangible assets over their useful lives, reflecting the reduction in value over time.

Working Capital

The difference between a company's current assets and current liabilities, indicating the amount of liquid assets the company has available to build its business.