The Amount of a Share's Risk That Is Diversified Awa

question 88

Multiple Choice

The amount of a share's risk that is diversified awa?

• A) is independent of the portfolio that you add it to.
• B) depends on the portfolio that you add it to.
• C) depends on risk-free rate of interest.
• D) depends on market risk premium.

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Definitions:

Decimal

A numerical value that uses a decimal point to indicate a fraction of a base-10 number.

Y-axis

The vertical axis in a two-dimensional graph, typically used to represent the range or dependent variable in a function or data set.

X-axis

The horizontal axis in a coordinate plane, typically used as a reference line for measuring distances along the horizontal direction.

Coordinate System

A system for specifying the precise location of points in a plane or space using numbers, typically represented by axes.