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It is assumed that the time failures for an electronic component are exponentially distributed with a mean of 50 hours between consecutive failures. What is the probability that a component will be functioning after 60 hours?
Nondiversifiable Risk
The portion of an investment's risk that cannot be eliminated through diversification, often associated with market-wide risks.
Systematic Risk
The danger that affects the whole market or a part of the market, which cannot be reduced by diversifying investments.
Unique Risk
A risk that affects a very small number of assets, also known as unsystematic risk, specific risk, or idiosyncratic risk, and can be largely eliminated by diversification.
Market Risk
The risk of losses in investments due to factors that affect the overall performance of the financial markets, including economic, political, and geopolitical events.
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