The Amount of Risk Premium Allocated to Security a Is

question 59

Multiple Choice

The amount of risk premium allocated to Security A is dependent upon which one of the following?

• A)unsystematic risk associated only with Security A
• B)total risk associated with Security A's classification
• C)total surprise associated with Security A
• D)the difference between the expected return and the actual return on Security A
• E)systematic risk associated with Security A

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Definitions:

Diversity

The presence of differences within a given setting, including race, ethnicity, gender, age, and other attributes affecting personal experiences and perspectives.

Cohesiveness

Refers to the degree of closeness and solidarity among members of a group.

Group Cohesiveness

The extent to which members of a group feel connected and committed to each other and to the group's objectives.

Threat

A perceived danger or harm that may negatively affect an individual's or organization's well-being.