Which One of the Following Best Illustrates a Type of Mitigation

question 29

Multiple Choice

Which one of the following best illustrates a type of mitigation strategy in response to climate change?

• A)Constructing and using wind turbines to generate electricity
• B)Building sea walls to protect low- lying areas from rising sea levels
• C)Using scrubbers to remove sulfur from coal before burning it to generate electricity
• D)Using coal- generated electricity to power electric cars

---

Definitions:

Unsystematic Risk

The risk associated with a specific company or industry, which can be mitigated through diversification.

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be eliminated through diversification.

Beta

Beta is a measure of the volatility, or systematic risk, of a security or portfolio in comparison to the market as a whole, indicating its sensitivity to market movements.

Market Index

A hypothetical portfolio of investment holdings that represents a segment of the financial market, used as a benchmark to measure an investment's performance.