Systematic Risk ____

question 54

Multiple Choice

Systematic risk ____.

• A) cannot be mitigated via diversification
• B) can be mitigated via diversification
• C) is unique to each firm
• D) is affected by factors such as strikes

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Definitions:

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions.

Surprise and Stress

A state of unexpected occurrences impacting mental or physical strain and changes in the body or behavior.

Paradox of Minority Influence

A phenomenon where a smaller number within a group can influence the opinions or behaviors of the majority despite their smaller status.

Accentuation Effect

A cognitive bias that involves exaggerating differences between members of distinct groups while minimizing differences within those groups.