Which of the Following Is a Characteristic of Unsystematic Risk

question 92

Multiple Choice

Which of the following is a characteristic of unsystematic risk?

• A) Affects one or a few firms
• B) Includes events like oil price shocks
• C) Cannot be reduced though diversification
• D) Is the only risk that investors in the market portfolio worry about

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Definitions:

Produce Tolerance

The process by which the body becomes increasingly resistant to the effects of a substance or stimulus after prolonged exposure.

Stimulants

Substances that increase alertness, attention, and energy by elevating the levels of certain neurotransmitters in the brain.

Sedatives

Are a class of drugs designed to calm or induce sleep by reducing irritability and excitement in the central nervous system.

Sleeping Pills

Medications designed to help individuals fall asleep or stay asleep, often used in the treatment of various sleep disorders.