Which of the Following Statements Concerning Risk Are Correct

question 36

Multiple Choice

Which of the following statements concerning risk are correct?
I.  Non-diversifiable risk is measured by beta.
II. The risk premium increases as diversifiable risk increases.
III. Systematic risk is another name for non-diversifiable risk.
IV. Diversifiable risks are market risks you cannot avoid.

• A) I and III only
• B) II and IV only
• C) I and II only
• D) III and IV only
• E) I, II, and III only

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Definitions:

Phobia

An intense, irrational fear of specific objects, situations, or activities that leads to avoidance behavior.

Punished

A consequence that decreases the likelihood of a behavior occurring in the future.

Internal Conflict

Psychological struggle within the mind of a literary or dramatic character, the resolution of which creates the plot's suspense.

Psychoanalytic Model

A theory of mind and psychological development that emphasizes unconscious motivations and conflicts, primarily developed by Sigmund Freud.