Unsystematic Risk Cannot Be Diversified Away

question 13

True/False

Unsystematic risk cannot be diversified away.

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Definitions:

Double-Blind Procedures

Experimental procedures in which neither the participants nor the experimenters know who is receiving a particular treatment, to prevent bias.

Placebo Effects

The phenomenon in which a person experiences a physical or psychological improvement after receiving a treatment that has no therapeutic value.

Hindsight Bias

Hindsight Bias is the tendency to believe, after an event has occurred, that one would have predicted or expected the outcome, even though it could not have been reasonably predicted.

Terrorism

The use of violence and intimidation, especially against civilians, in the pursuit of political aims.