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Which of the Following Statements Is/are Correct

question 11

Multiple Choice

Which of the following statements is/are correct?
I. Unsystematic risk can be eliminated through diversification.
II. Unsystematic risk is the relevant portion of an asset's risk attributable to market factors that affect all firms, like inflation, political events, etc.


Definitions:

Terman's Studies

A series of longitudinal studies conducted by psychologist Lewis Terman, which focused on the development and characteristics of gifted children over their lifespan.

IQ Scores

Quantitative measurements used to assess an individual's intelligence level relative to their age group.

Nobel Prizes

A set of annual international awards bestowed in several categories by Swedish and Norwegian institutions in recognition of academic, cultural, or scientific advances.

Cross-Sectional Study

Research that compares people of different ages at the same point in time.

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