Unsystematic Risk

question 46

Multiple Choice

Unsystematic risk:

• A) is the remaining risk in a well-diversified portfolio.
• B) is measured with beta.
• C) can be diversified away.
• D) all of the above

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Definitions:

Product Line

A group of related products offered by a company that serve a similar need or are marketed under a single brand.

Service Organizations

Companies offering non-physical services or products to their customers, rather than physical items.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on their usage of resources.

Selling and Administrative Costs

Expenses related to the selling of products and the management of a business, exclusive of manufacturing costs.