Perry Is Looking at His Budget Alongside His Requirements for a New

question 49

Multiple Choice

Perry is looking at his budget alongside his requirements for a new computer. He does not have a lot to spend, but he wants to get as much for his money as he possibly can; and he wants to be very confident that the choice he is making is well-informed.
-Which of the following would NOT be true of computers priced higher than $1,200?

• A) These computers contain one or more fast processors.
• B) These computers have a generous amount of RAM.
• C) These computers do not adequately support video editing tasks.
• D) These computers are likely required by anyone working extensively with video editing.

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Definitions:

Systematic Risk

The risk inherent to the entire market or an entire market segment, which cannot be mitigated through diversification.

Asset Specific Risk

The risk of loss associated with a particular asset, different from market risk.

Portfolio Diversification

A risk management technique that mixes a wide variety of investments within a portfolio.

S&P/TSX 60 Index

A stock market index of 60 large companies listed on the Toronto Stock Exchange, representing leading sectors in Canada.