Which of the Following Is NOT One of the Five

question 53

Multiple Choice

Which of the following is NOT one of the five key factors in determining a good business location?

• A) The entrepreneur's personal preference
• B) Business plan complexity
• C) Business environment conditions
• D) Site availability and costs

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Definitions:

Risk Premium

The risk premium is the extra return above the risk-free rate that investors demand as compensation for the risk of investing in a particular asset.

Portfolio Beta

A measure of the volatility, or systematic risk, of a portfolio of assets in comparison to the market as a whole.

Unsystematic Risk

Risk associated with a specific company or industry, which can be mitigated through diversification.

Market Risk

The possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets.