Which of the Following Equation Is FALSE

question 78

Multiple Choice

Which of the following equation is FALSE?

• A) Total risk = general risk + specific risk
• B) Total risk = market risk + issuer risk
• C) Total risk = systematic risk + nonsystematic risk
• D) Total risk = un-diversified risk + equity risk

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Definitions:

GAAP Requirements

The set of standardized guidelines and principles designed for financial accounting, used to ensure consistency, clarity, and comparability of financial statements.

Impairment Losses

Losses recognized when the carrying amount of an asset exceeds its recoverable amount.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) for the preparation of public company financial statements on a global basis.

GAAP

A series of standard accounting protocols and measures adopted broadly for financial statement compilation.