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:

Model

A simplified representation, often mathematical, of a process or relationship between variables used to predict or explain real-world phenomena.

Applicable

Relevant or appropriate in a given situation or context.

Television Ownership

The state or fact of owning a television set, often considered in studies related to media consumption habits.

Per Capita GDP

A measure of a country's economic output that accounts for its number of people, essentially dividing the GDP by the population.