​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

• A)​1 and 2
• B)​2 and 3
• C)​1 and 4
• D)​2 and 4

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Definitions:

X Chromosomes

One of two sex chromosomes, present as two copies in females (XX) and one in males (XY), carrying genes that determine sexual development and contribute to other traits.

Differentiation

Process by which cells become specialized during development; occurs as different cells in an embryo begin to use different subsets of their DNA.

Subsets

Portions of a larger set that contain some or all elements of the original set, obeying the principle that every set is a subset of itself.

DNA

Deoxyribonucleic acid, a self-replicating material which is present in nearly all living organisms as the carrier of genetic information.