Unsystematic Risk

question 35

Multiple Choice

Unsystematic risk:

• A) can be effectively eliminated by portfolio diversification.
• B) is compensated for by the risk premium.
• C) is measured by beta.
• D) is measured by standard deviation.
• E) is related to the overall economy.

---

Definitions:

Psychological

Pertaining to the mind or mental processes, often relating to mental health and behavior.

Brief Psychotic

Describes a sudden, temporary episode of psychotic behavior, such as hallucinations or delusions, lasting less than a month.

Delusions

False beliefs held with conviction despite evidence to the contrary.

Disorganized Speech

A way of speaking that is incoherent and lacks the normal structure, making it hard for others to understand, often associated with severe mental disorders.