According to Research,which of the Following Sets of Sentences Would

question 16

Multiple Choice

According to research,which of the following sets of sentences would take the longest amount of time to read and comprehend?

• A)We took the dog to the vet.The dog was nervous.
• B)Sara drove the car to the market.The car ran out of gas.
• C)She wrapped the Christmas presents.The sweater needed a larger box.
• D)We got some beer out of the car.The beer was warm.

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Definitions:

Unsystematic Risk

The risk associated with a specific company or industry, which can be reduced through diversification.

Asset-specific Risk

Refers to the risk affecting an investment's value that is associated with the particular assets the investment owns, distinct from marketwide risks.

Specific Risk

The risk associated with a particular company or sector, which can be mitigated through diversification.

Market Risk Premium

Market Risk Premium is the additional return an investor expects from holding a risky market portfolio instead of risk-free assets.