Identify the Four Pillars of Procedural Justice

question 7

Essay

Identify the four pillars of procedural justice. Why do you think these are important?

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Definitions:

Firm-Specific Risk

This is the type of risk that affects only a particular company or industry, not the entire market or economy.

Beta

A measure of a stock's volatility relative to the overall market, indicating how much the stock's price is expected to move compared to the market.

Firm-Specific Risk

The portion of a security's risk that is attributable to factors affecting only that company, distinct from market risk.

Unique Risk

Risk that affects a very limited number of assets, often referred to as "unsystematic risk" or "idiosyncratic risk."