Consider the Following Two Statements About Systematic and Unsystematic Risk

question 17

Multiple Choice

Consider the following two statements about systematic and unsystematic risk: (i) News about GNP is always related to systematic risk.
(ii) News about the CEO of a company is only unsystematic if it was not expected.

• A)(i) is correct, and (ii) is incorrect.
• B)(ii) is correct and (i) is incorrect.
• C)Both (i) and (ii) are correct.
• D)Both (i) and (ii) are incorrect.
• E)News is not related to risk.

Apply Lewin's Field Theory to analyze individual behavior changes within groups.

Distinguish between experimental and non-experimental research designs and their implications for causation.

Analyze the factors that contribute to group cohesiveness and performance.

Compare and contrast observational methods and self-report methods and discuss their strengths and weaknesses.

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Definitions:

Payoff Table

A decision analysis tool that summarizes the outcomes of different decisions in various states of nature, typically showing the payoff or loss for each combination of decision and state.

EMV Decision

A strategic choice made by calculating and comparing the expected monetary values of different options or paths.

Prior Probabilities

The probabilities initially assigned to hypotheses or events based on background knowledge before new data is taken into account.

States of Nature

Scenarios or conditions in decision-making models that are outside the decision maker's control, representing different possible outcomes of external factors.