_________ Occurs When the Effects of a Prior Condition Influence

question 71

Multiple Choice

_________ occurs when the effects of a prior condition influence subsequent treatment conditions.

• A)Transformation
• B)Carry over
• C)Conversion
• D)Residual

---

Definitions:

Nonsystematic Risk

The risk associated with a specific issuer of a security, also known as idiosyncratic or unsystematic risk, that can be reduced through diversification.

Well-Diversified Portfolio

An investment portfolio that includes a mix of assets (e.g., stocks, bonds, real estate) to reduce risk through diversification.

Nonsystematic Variance

Refers to the variability in a security or portfolio returns that is not due to market-wide influences but rather specific to an individual security or firm.

Factor Beta

Sensitivity of security returns to the realization of a systematic factor. Also called factor loading and factor sensitivity.