Systematic Risk

question 21

Multiple Choice

Systematic risk:

• A) is the standard deviation of a security's return.
• B) is measured with beta.
• C) is measured with standard deviation.
• D) none of the above

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Definitions:

Somatic

Pertaining to the body, particularly as distinct from the mind or psyche, often used in the context of bodily symptoms or sensations.

Sympathetic

Part of the autonomic nervous system involved in the body's fight or flight response, preparing the body for rapid action in response to a threat.

Sympathetic Nervous System

A part of the autonomic nervous system that activates the 'fight or flight' response, increasing heart rate, dilating pupils, and preparing the body for action.

Parasympathetic

Part of the autonomic nervous system responsible for conserving energy and facilitating rest and digestion processes.