Examlex
Jack explains his cat's annoying meowing near the refrigerator as a simple response-outcome association (R-O learning) that was established by the cat's being fed in response to the meowing. Tim says that the cat believes that the meowing itself causes the door to be opened. Jack, but not Tim, seems to be operating according to the precepts of
Diversifiable Risk
A risk that can be reduced or mitigated through the diversification of investments in a portfolio.
Government Regulation
Laws and rules established by governmental agencies aimed at controlling the way businesses can operate within the economy.
Systematic Risk
A hazard inherent to the entire market or a market segment, which diversification cannot diminish.
Unsystematic Risk
Refers to the risk that is specific to a company or industry, and can be mitigated through diversification.
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