That Part of a Security's Risk Associated with Random Outcomes

question 12

Multiple Choice

That part of a security's risk associated with random outcomes generated by events or behaviors, specific to the firm is also known as the _____.

• A) nondiversifiable risk
• B) unsystematic risk
• C) market risk
• D) systematic risk
• E) relevant risk

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Definitions:

Permanent Restriction

A binding condition or stipulation that indefinitely limits the use of an asset or the execution of an action.

Philanthropic Gift

A donation made by an individual or an organization to a nonprofit entity, typically for charitable purposes or to support a cause.

Government Grant

financial awards given by governmental bodies to organizations, institutions, or individuals for specific purposes, usually without the expectation of repayment.

Quasi-Endowment Funds

Funds set aside by an organization, often a nonprofit or educational institution, to function like an endowment but which can be accessed under certain conditions, as determined by its governing body.