Investors Can Avoid Unsystematic Risk by

question 63

Multiple Choice

Investors can avoid unsystematic risk by

• A)using the capital asset pricing model.
• B)investing in stocks with low PE ratios.
• C)holding diversified portfolios.
• D)using the free cash flow model.

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Definitions:

SASSI

A self-report screening tool designed to identify individuals who have substance dependency problems based on their responses to various questions.

Substance Dependency

A condition characterized by the compulsive use of substances (such as drugs or alcohol) despite harmful consequences, leading to physical and psychological dependence.

Electra Complexes

A psychoanalytic theory describing a girl's psychosexual competition with her mother for possession of her father, akin to the Oedipus complex in boys.

Freudian Theory

A psychological theory developed by Sigmund Freud that emphasizes unconscious drives and conflicts as the primary sources of human behavior.