Managerial Judgments or Unforeseen Negative Events That Happen to a Firm

question 118

True/False

managerial judgments or unforeseen negative events that happen to a firm are defined as "company-specific," or "unsystematic," events, and their effects on investment risk can in theory be diversified away.

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Definitions:

Good-natured

Having or characterized by a pleasant, agreeable, and cooperative disposition.

Trusting

The act of believing in the reliability, truth, ability, or strength of someone or something without requiring constant proof or evidence.

Extraversion

A personality trait characterized by outgoing, talkative, and socially confident behaviors.

Outgoing

Characterized by an open, friendly, and socially confident behavior, often actively seeking social interaction.