Which of the Following Is the Best Definition of Unsystematic

question 232

Multiple Choice

Which of the following is the best definition of unsystematic risk

• A) A theory showing that the expected return on any risky asset is a linear combination of various factors.
• B) A risk that affects at most a small number of assets. Also called unique or asset-specific risks.
• C) A risk that influences a large number of assets. Also called market risk.
• D) Positively sloped straight line displaying the relationship between expected return and beta.
• E) Principle stating that spreading an investment across a number of assets eliminates some, but not all, of the risk.

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Definitions:

Direct Marketing

A type of advertising where businesses communicate directly with customers through various media, including mail, email, and texting.

Prospective Buyer

An individual or organization showing interest in purchasing a product or service, potentially becoming a customer.

Request

A solicitation or petition for something required or desired.

Transaction

The act of buying or selling something; a business deal or financial exchange.