Unsystematic Risk Can Be Defined as

question 7

Multiple Choice

Unsystematic risk can be defined as

• A) the total risk to the firm.
• B) the risk of the individual security.
• C) the added risk that a firm's shares bring to a diversified portfolio.
• D) the risk that can be systematically diversified away.

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Definitions:

Influenced Darwin

Refers to the various observations, findings, and scholars that contributed to Charles Darwin’s development of the theory of evolution by natural selection.

Genetic Drift

A mechanism of evolution that leads to random changes in the gene frequencies of a population over time, particularly in small populations.

Hereditary Material

Genetic material, such as DNA or RNA, that is passed from parents to offspring and determines inherited characteristics.

Sexual Selection

Refers to the process of choosing mates based on certain traits, which can influence an individual's ability to reproduce within a population.