Unsystematic Risk Is Defined as the Risk That

question 18

Multiple Choice

Unsystematic risk is defined as the risk that:

• A) Affects almost every financial asset that is sold in the marketplace.
• B) Relates to the overall economy, such as inflation and GDP growth.
• C) Serves as the basis for determining the amount of the risk premium.
• D) Is derived from an event that affects a single firm or a limited number of assets.
• E) Is generated by expected news.

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Definitions:

Ellipsis

A mark or series of marks used in writing or printing to indicate an omission, especially of letters or words.

Omitting Word

The act of leaving out a word or words from a sentence or document.

Modifies

The act of changing or altering something to fit a particular condition or requirement.

Adverb

A word added to (modifying) a verb, an adjective, or another adverb.