Unsystematic Risk

question 35

Multiple Choice

Unsystematic risk:

• A) can be effectively eliminated by portfolio diversification.
• B) is compensated for by the risk premium.
• C) is measured by beta.
• D) is measured by standard deviation.
• E) is related to the overall economy.

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Definitions:

Labor Productivity

The measure of economic performance calculated by dividing the output by the number of labor hours used to produce it.

Technological Advance

The process of developing and applying new techniques and tools to improve efficiency, productivity, or quality in various fields.

Input Proportions

The ratio of one type of input to another type of input used in the production of goods or services.