Unsystematic Risk

question 97

Multiple Choice

Unsystematic risk:

• A) Can be effectively eliminated through portfolio diversification.
• B) Is compensated for by the risk premium.
• C) Is measured by beta.
• D) Cannot be avoided if you wish to participate in the financial markets.
• E) Is related to the overall economy.

---

Definitions:

Foreign Supplier

A company or individual that provides goods or services from outside the buyer's home country.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than others, leading to more efficient global production and trade.

Dumping

The practice of selling a product in a foreign market at a price lower than its domestic market or below its cost of production, often to increase market share or eliminate surplus.

Per Capita GDP

is a measure of the economic output of a country divided by its population, providing an average economic welfare indicator.