Idiosyncratic Risk

question 151

Multiple Choice

Idiosyncratic risk:

• A) cannot be eliminated through diversification.
• B) is unique to a company or asset.
• C) is only present in index funds.
• D) All of these are true.

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Definitions:

Stress

A physical, mental, or emotional strain or tension resulting from adverse or very demanding circumstances.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Anxiety

An emotion characterized by feelings of tension, worried thoughts, and physical changes like increased blood pressure, often in response to perceived stress.

Case Studies

Detailed analyses of particular instances, individuals, or groups, used as illustrative examples or research tools.