You Are Recalculating the Risk of ACE Stock in Relation

question 37

Multiple Choice

You are recalculating the risk of ACE stock in relation to the market index, and you find that the ratio of the systematic variance to the total variance has risen. You must also find that the ________.

• A) covariance between ACE and the market has fallen
• B) correlation coefficient between ACE and the market has fallen
• C) correlation coefficient between ACE and the market has risen
• D) unsystematic risk of ACE has risen

---

Definitions:

Custom

Established norms and customary practices unique to a particular culture, location, or era, that dictate the conventional manner of conduct or performance.

Consumer Behaviour

The study of how individual consumers, groups, or organizations select, buy, use, and dispose goods, services, ideas, or experiences.

Culture

A complex system of values, traditions, symbols, and practices shared by a group of people that collectively form their way of life.

Crescive Norms

Unwritten rules that are discovered through interaction with a culture or society, influencing behavior and expectations.