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:

Annual Dividend

The regular payment made by a corporation to its shareholders, often expressed as a fixed amount per share that is distributed annually.

Downsizing Mode

A corporate strategy involving the reduction of a company's size, typically through layoffs, to reduce costs and improve efficiency.

Dividends

The portion of a company's profits distributed to shareholders, typically in the form of cash payments or additional shares.