The Original Price on a Table Is $250

question 33

Multiple Choice

The original price on a table is $250. The table is on sale for $137.50. What is the markdown rate?

• A) 55%
• B) 45%
• C) 40%
• D) 35%

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Definitions:

Unique Risk

Unique Risk, also known as unsystematic risk, refers to the risk associated with a specific company or industry that can be reduced through diversification.

Systematic Risk

The portion of investment risk that is inherent in the entire market or market segment, also known as market risk, which cannot be eliminated through diversification.

Market Risk

The potential for investors to experience losses due to factors that affect the overall performance of the financial markets.

Diversified Away

Refers to the reduction of risk in a portfolio by investing in a variety of assets, thus minimizing the impact of any single investment's performance.