In an Experiment, You Measure the Result of the Feature

question 30

Short Answer

In an experiment, you measure the result of the feature being manipulated, called the __________ variable, on an outcome, called the __________ variable.

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Definitions:

Systematic Risk

The inherent risk affecting the overall market or a particular sector, which cannot be eliminated through diversification.

Market Risk

The risk of losses in investments due to factors that affect the entire market or asset class, such as economic changes or political events.

Firm-specific Risk

The type of risk that affects a particular company or industry, also known as unsystematic risk.

Diversified Away

The risk that can be reduced or eliminated in a portfolio through investments in a variety of assets, thus not tied to the performance of a single investment.