Which of the Following Is the Best Definition of Unsystematic

question 279

Multiple Choice

Which of the following is the best definition of unsystematic 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.

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Definitions:

Ubiquity

The state of being present, appearing, or found everywhere, especially simultaneously.

Mobile Wallet

A digital wallet that stores payment card information on a mobile device, enabling users to make in-store or online transactions conveniently.

Gas Station

A retail establishment that sells fuel and engine lubricants for motor vehicles.

Location Services

A technology used to determine a device's current location through GPS or similar methods, often to provide personalized services or information.