It Is Important to Understand That Business-Specific (Unsystematic)risk Is Not

question 166

Multiple Choice

It is important to understand that business-specific (unsystematic) risk is not included in the capital asset pricing model, because beta measures only market (systematic) risk. The underlying assumption is that:

• A)we don't need to worry about business-specific risk in portfolios because it's diversified away.
• B)we can't measure business-specific risk so it's useless to worry about it.
• C)business-specific risk is usually small compared with market risk.
• D)All of the above

Grasp different approaches to abnormality and the continuum model.

Know the principles of therapies based on theories of psychological phenomena.

Understand the neurotransmitter functioning and its impact on behavior.

Grasp the concept of the nature-nurture debate in abnormal behavior.

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Definitions:

Absolute Scale

A measurement system that has a fixed starting point or zero value, facilitating the comparison of absolute quantities.

GLOBE Model

A research paradigm that examines the impact of culture on leadership effectiveness and organizational behavior across societies.

Cultural Dimensions

Frameworks or models that describe the effects of a society's culture on the values and behaviors of its members, often used in cross-cultural communication and business practices.

Future Orientation

The degree to which individuals or organizations focus on and plan for future events and possibilities.