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:

Financial Analysis

The evaluation of a company's financial statements to assess its performance and to make future financial decisions.

General-Purpose Financial Statements

Financial documents that are prepared to meet the needs of various external users who cannot demand custom reports.

Accounts Receivable Turnover

A financial metric that measures how many times a company collects its average accounts receivable within a specific period.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.