Which of the Following Is Not a Component of the Risk

question 41

Multiple Choice

Which of the following is not a component of the risk premium?

• A) Business risk
• B) Financial risk
• C) Liquidity risk
• D) Exchange rate risk
• E) Unsystematic market risk

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Definitions:

Idle Capacity

The unused portion of a company's production capacity, where resources such as space, labor, or equipment are underutilized.

Contribution Margin

The amount of revenue remaining after deducting variable costs, contributing to covering fixed costs and profit.

Standard Sensor

A predefined device used to detect or measure physical properties.

Special Sensor

A device designed to detect, measure, and respond to specific inputs from the physical environment, such as light, heat, motion, moisture, pressure, or any one of a great number of other environmental phenomena.