Technical Standards in High-Technology Industries Are

question 24

Multiple Choice

Technical standards in high-technology industries are:

• A) specifications developed by each producing company for its own products and product components.
• B) specifications that producers adhere to when making a product or a component.
• C) product specifications imposed by the federal government.
• D) product features desired by consumers.
• E) general guidelines proposed by industry leaders.

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Definitions:

Systematic Risk

The risk inherent to the entire market or an entire market segment, influenced by factors such as economic, geopolitical, and financial events, which cannot be eliminated through diversification.

Expected Return

The anticipated return on an investment, factoring in the probability of various outcomes.

Security Market Line

A line that represents the relationship between the risk of investing in a security and its expected return, as per the Capital Asset Pricing Model.

Market Risk Premium

The extra yield an investor anticipates when they invest in a volatile market portfolio as opposed to assets that are free from risk.