Some Risk Is Inherent in a Market and Cannot Be

question 89

Multiple Choice

Some risk is inherent in a market and cannot be avoided by diversifying within the market. This risk is called

• A)natural risk.
• B)systematic risk.
• C)market risk.
• D)unavoidable risk.
• E)inevitable risk.

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Definitions:

Economic Diversification

The process of expanding an economy to include a wider array of industries and services to reduce dependence on any single economic sector.

Dictatorial Regimes

Dictatorial regimes are governments ruled by a single leader or a small group of individuals who exercise absolute power, often suppressing opposition, controlling the media, and limiting personal freedoms.

Wendell Willkie

An American lawyer and corporate executive who ran as the Republican presidential candidate against Franklin D. Roosevelt in 1940, advocating for liberal principles.

Adolf Hitler

The leader of Nazi Germany from 1933 to 1945, whose regime was responsible for the outbreak of World War II and the atrocities of the Holocaust.