Examlex
Public opinion regarding existing public programs and policies and general allocations of responsibility between public and private sectors tend to be far more stable than regarding newly proposed initiatives. Which factor plays a crucial role?
Variability of Returns
The extent of fluctuation in the returns on an investment over a certain period of time, often used as a measure of investment risk.
Business-specific Risk
This is the risk associated with the unique factors impacting a specific company or industry, excluding broader market or economic risks.
Unsystematic Risk
The risk associated with a particular company or industry, which can be mitigated through diversification.
Diversification
The strategy of spreading investments among various financial assets to reduce risk.
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