Which One of These Represents Systematic Risk

question 19

Multiple Choice

Which one of these represents systematic risk?

• A)Major layoff by a regional manufacturer of power boats
• B)Increase in consumption created by a reduction in personal tax rates
• C)Surprise firing of a firm's chief financial officer
• D)Closure of a major retail chain of stores
• E)Product recall by one manufacturer

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Definitions:

Preoperational Thought

A stage in Piaget's theory of cognitive development where children from about 2 to 7 years think symbolically but are not yet able to use logical operations.

Logical Operations

are mental processes involved in reasoning and thinking logically, especially in terms of categorization, seriation, and conservation, based on principles of consistency and non-contradiction.

Theory of Mind

Theory of Mind is the ability to attribute mental states, like beliefs, intents, desires, emotions, and knowledge, to oneself and others, and to understand that others have beliefs, desires, and intentions that are different from one's own.

Cognitive Growth

The development of intelligence, conscious thought, and problem-solving ability that occurs as one ages.