All of the Following Are Primary Sources of Systematic Risk

question 4

Multiple Choice

All of the following are primary sources of systematic risk except

• A)changes in the amount of foreign competition facing an industry
• B)changes in investor expectations about the economy
• C)interest rate changes
• D)changes in purchasing power

---

Definitions:

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as part of retirement planning.

Sensitivity Analysis

A technique used in financial modeling to determine how different values of an independent variable affect a particular dependent variable under a given set of assumptions.

Residual Value

The estimated value of a fixed asset at the end of its useful life, important for calculating depreciation.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time.