Examlex

Solved

Technology Is an Important Factor in Explaining the High Incomes

question 89

Multiple Choice

Technology is an important factor in explaining the high incomes of superstars because


Definitions:

Firm-specific Risk

The type of risk that affects a particular company or industry, also known as unsystematic risk.

Diversified Away

The risk that can be reduced or eliminated in a portfolio through investments in a variety of assets, thus not tied to the performance of a single investment.

Market Risk

The risk of losses in positions arising from movements in market prices.

Firm-specific Risk

The portion of an asset's risk that is attributable to the company's individual factors, uncorrelated with general market movements.

Related Questions