Which Security Has the Greatest Systematic Risk

question 94

Multiple Choice

Which security has the greatest systematic risk?

• A) Z because it has the largest standard deviation.
• B) X because it has the largest beta coefficient.
• C) Z because it has a high beta and the largest standard deviation.
• D) Y because it has the greatest diversifiable risk.
• E) It is not possible to tell given the information above.

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Definitions:

Courts of Chancery

Courts that administer equity and handle matters such as trusts, estates, and guardianships, distinct from courts that deal with law.

Law of Equity

A branch of law that supplements common law by providing remedies and justice that are not available in traditional legal systems, focusing on fairness.

Common Law Courts

Courts that base their decisions on precedents or judicial rulings rather than written statutes.

Stare Decisis

A legal principle that obligates courts to follow historical cases when making a ruling on a similar current or future case.