Unsystematic Risk

question 42

Multiple Choice

Unsystematic risk:

• A) Can be effectively eliminated through portfolio diversification.
• B) Is compensated for by the risk premium.
• C) Is measured by beta.
• D) Cannot be avoided if you wish to participate in the financial markets.
• E) Is related to the overall economy.

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Definitions:

Neuron

A neuron is a nerve cell that is the basic building block of the nervous system, responsible for transmitting information throughout the body.

Neural Communication

The process by which neurons transmit information through electrical and chemical signals across synapses.

Glial Cells

Non-neuronal cells in the central nervous system and the peripheral nervous system that support, protect, and nourish neurons.

Functions

The natural purpose or actions that an object or individual is designed or expected to perform.