The Two Distinctly Different Parts of the Movement of Stock

question 4

Multiple Choice

The two distinctly different parts of the movement of stock returns are:

• A)market risk and systematic risk.
• B)business-specific and unsystematic risk.
• C)unsystematic risk and systematic risk.
• D)All of the above

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Definitions:

Board Of Directors

A collection of persons chosen by the shareholders to supervise the corporation's management and make significant decisions on its behalf.

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions, managing the overall operations and resources of a company.

Measurement (Cost) Principle

A principle that states accounting information is based on actual cost incurred in transactions, which includes the initial purchase price plus any additional costs necessary to get the asset ready for use.