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​Systematic Risk 1) Is the Tendency for a Stock's Return and the and the Return

question 15

Multiple Choice

​Systematic risk
1) is the tendency for a stock's return and the return on the market to move together
2) is reduced by constructing a diversified portfolio
3) depends on the firm's business and financial risk
4) is measured by beta coefficients

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Definitions:

Price Level

A measure of the average prices of goods and services in an economy, often used to evaluate inflation or deflation over time.

Real Wage

The amount of goods and services a worker can purchase with his or her nominal wage; the purchasing power of the nominal wage.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource, such as labor or capital.

Total Revenue

is the overall amount of money generated by a business from its activities, including sales of goods or services, before any expenses are deducted.

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