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:

Social-cognitive Perspective

An approach in psychology focusing on how people's thoughts, beliefs, and attitudes influence their behavior within a social context.

Epigenetic

Pertains to the study of heritable changes in gene expression that do not involve changes to the underlying DNA sequence.

Depression's Vicious Cycle

A repetitive loop where negative thoughts exacerbate depressive symptoms, which in turn generate more negative thoughts.

Behavioral Withdrawal

The act of retreating or disengaging from social interactions and activities, often as a coping mechanism for stress or anxiety.