If Company a Makes a New Product Discovery and Their

question 3

Multiple Choice

If company A makes a new product discovery and their stock rises 5% this will have:

• A) no effect on Company B's stock price because it is a systematic risk element.
• B) no effect on Company B's stock price because it is an unsystematic risk element.
• C) a large effect on Company B's stock price because it is a systematic risk element.
• D) a large effect on Company B's stock price because it is an unsystematic risk element.

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Definitions:

Punishments

Refers to penalties imposed for wrongdoing, often with the intention of correcting behavior or serving as a deterrent to others.

Discriminatory Practices

Actions or policies that treat individuals or groups unfairly based on characteristics such as race, gender, age, or sexual orientation.

Socialized

The process through which individuals learn and internalize the values, beliefs, and norms of their society or social group, influencing their behavior and perceptions.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.