The Systematic Risk of the Market Is Measured by A

question 89

Multiple Choice

The systematic risk of the market is measured by a:

• A) beta of 1.
• B) beta of 0.
• C) standard deviation of 1.
• D) standard deviation of 0.
• E) variance of 1.

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Definitions:

Foreign Corrupt Practices Act

A U.S. law that prohibits companies and their managers from making corrupt payments to foreign officials for the purpose of obtaining or keeping business.

Civil Law System

A legal system that is based on a comprehensive set of laws that are codified into a referable system, prevalent in countries like France and Germany.

Common Law System

A legal system characterized by case law, which is law developed by judges through decisions of courts and similar tribunals.

Choice-of-Law Clause

A provision in a contract that specifies which jurisdiction's laws will be used to interpret the agreement, typically chosen for its favorable laws towards the party imposing the clause.