Match Each Term with the Correct Statement Below

question 21

Short Answer

Match each term with the correct statement below.
-A program on a read-only or flash memory chip that establishes basic communication with components such as the monitor and disk drives

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Definitions:

Systematic Risk

This is the exposure to uncertainty faced by all investments in a market or a sector, and is also recognized as market risk or non-diversifiable risk.

Unsystematic Risk

The risk of price change due to the unique circumstances of a specific security, as opposed to the market as a whole.

Market Risk Premium

The extra return expected by investors for taking on the risk of investing in the stock market over a risk-free rate.

Security Market Line

A line representing the relationship between the expected return of a market security and its risk, as measured by beta.