Risk That Affects a Large Number of Assets, Each to a Greater

question 220

Multiple Choice

Risk that affects a large number of assets, each to a greater or lesser degree, is called:

• A) Idiosyncratic risk.
• B) Diversifiable risk.
• C) Systematic risk.
• D) Asset-specific risk.
• E) Total risk.

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Definitions:

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A type of bee known for its role in pollination and for producing honey and beeswax.

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Refers to the way outcomes or values are spread over a range of possibilities.

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An imaginary line encircling the Earth, equidistant from both the North and South Poles, dividing it into the Northern and Southern Hemispheres.