The Unsystematic Risk of a Specific Security

question 50

Multiple Choice

The unsystematic risk of a specific security

• A) is likely to be higher in an increasing market.
• B) results from factors unique to the firm.
• C) depends on market volatility.
• D) cannot be diversified away.

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Definitions:

Watson's Actions

Refers to the research and theories of John B. Watson, an American psychologist who established the psychological school of behaviorism, emphasizing the importance of observable behaviors over internal phenomena like thoughts and emotions.

Ethical

Pertaining to morality or the principles of morality; concerned with determining what is right and wrong.

Unconditioned Stimulus

In traditional conditioning, a stimulus instinctively and spontaneously evokes a reaction without any previous learning.

Little Albert

is a reference to a famous psychology experiment by John B. Watson and Rosalie Rayner that studied classical conditioning in humans, particularly the development of a fear response in a young boy.