Which of the Following Statements About the Various Types of Risks

question 45

Multiple Choice

Which of the following statements about the various types of risks is true?

• A) Default risk is a nondiversifiable risk.
• B) Interest rate risk is an unsystematic risk.
• C) Inflation risk is a systematic risk.
• D) Maturity risk is a firm-specific risk.
• E) Political risk is a diversifiable risk.

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Definitions:

Self-efficacy

Someone's conviction in their competence to perform tasks needed for certain achievements.

Reciprocal Determinism

A concept in psychology that posits an individual's behavior is both influenced by and influences their personal factors and the environment.

Spotlight Effect

The belief that others pay more attention to our appearance and behavior than they actually do.

Self-efficacy

An individual’s belief in their capacity to execute behaviors necessary to produce specific performance attainments.