A Distinguishing Feature of a Cooperative Is That It

question 41

Multiple Choice

A distinguishing feature of a cooperative is that it

• A) maintains a distinct separation between ownership and management.
• B) is only intended to operate for a limited period of time.
• C) is owned and operated by the people who use it.
• D) can have no more than 75 owners, all of whom must be citizens of the United States.

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Definitions:

Systematic Risk Principle

The concept that an investor can reduce the overall risk of an investment portfolio through diversification, except for inherent market risks that cannot be diversified away.

Efficient Markets Hypothesis

The efficient markets hypothesis is an investment theory that states it is impossible to "beat the market" because stock market efficiency causes existing share prices to always incorporate and reflect all relevant information.

Security Market Line

A representation in finance that shows the relationship between risk and return of a market.

Beta Coefficient

A measure of a stock's volatility in relation to the overall market, indicating its level of risk compared to the market average.