Examlex
Which of the following is an adverse supply shock?
Diversification
A strategy to reduce risk by allocating investments among various financial instruments, industries, and other categories.
Nonsystematic Risk
The part of an investment's risk that is attributable to firm-specific or industry-specific factors and can be mitigated through diversification.
Volatility
A statistical measure of the dispersion of returns for a given security or market index, often used to quantify the risk of the security or market.
Sensitivity
The degree to which a financial asset's price responds to changes in underlying factors, such as interest rates or market volatility.
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