One of the Factors Contributing to the High Levels of Pollution

question 131

Multiple Choice

One of the factors contributing to the high levels of pollution in China is:

• A) the anti-environmental sentiment of the leaders
• B) the high fines associated with breaking the law
• C) the lack of authority to shut down government-owned companies that violate environmental laws
• D) the overzealous environmental agencies
• E) lack of data on the adverse effects of pollution

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Definitions:

Nonsystematic Variance

Nonsystematic variance, also known as unsystematic risk, is the portion of an investment's risk that is attributable to the specific risk of its issuer and can be mitigated through diversification.

Security Market Line

A graphical representation of the capital asset pricing model, showing the expected return of an investment as a function of its systemic risk.

Nonsystematic Risk

The risk associated with an individual asset or investment, resulting from factors specific to its issuer's performance and not the broader market.