A Systemic Risk Is a Risk That

question 5

Multiple Choice

A systemic risk is a risk that

• A)can be eliminated through diversification.
• B)can be the cause of the collapse of an entire system.
• C)can be insured privately.
• D)can be easily contained so that it does not spread.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values differ from the mean of the set.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values deviate from the mean.

Standard Error

The standard deviation of the sampling distribution of a statistic, typically the mean, indicating the variability of an estimate.

Mean

The mean is the average of a set of numbers, calculated by adding them all together and then dividing by the count of those numbers.