Jason Has Been Fired by His Company and He Posted

question 31

Multiple Choice

Jason has been fired by his company and he posted on his blog false rumours about his company.What term is used to refer to Jason's postings?

• A)a security breach
• B)a privacy breach
• C)libel
• D)vengeance

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Definitions:

Unsystematic Risk

The risk associated with an individual asset or firm, which can be mitigated through diversification.

Covariance

A statistical measure that calculates the degree to which two variables move in relation to each other.

Correlation

The statistical measure of how two securities move in relation to each other, ranging from -1 to +1.

Risky Assets

Financial instruments that carry a higher degree of risk compared to risk-free assets, potentially leading to higher returns or losses.