Which of the Following Is the Best Definition of Systematic

question 55

Multiple Choice

Which of the following is the best definition of systematic risk?

• A) A theory showing that the expected return on any risky asset is a linear combination of various factors.
• B) A risk that affects at most a small number of assets. Also called unique or asset-specific risks.
• C) A risk that influences a large number of assets. Also called market risk.
• D) Positively sloped straight line displaying the relationship between expected return and beta.
• E) Principle stating that spreading an investment across a number of assets eliminates some, but not all, of the risk.

---

Definitions:

Translation

The process in which ribosomes synthesize proteins using the mRNA transcript as a template.

Totipotent

Describes cells that have the potential to differentiate into any type of cell in an organism, including embryonic and extraembryonic structures.

Adult Stem Cells

Adult stem cells are undifferentiated cells found throughout the body after embryonic development that can differentiate into specialized cell types and divide to replenish dying cells and regenerate damaged tissues.

Proto-Oncogenes

Normal genes that can become oncogenes (cancer-causing genes) if mutated, typically involved in cell growth and division.