Which of the Following Is the Only Risk That Is

question 5

Multiple Choice

Which of the following is the only risk that is relevant to a rational, diversified investor, because it cannot be eliminated or reduced through diversification?

• A)Diversifiable risk
• B)Stand-alone risk
• C)Market risk
• D)Unsystematic risk
• E)Firm-specific risk

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Definitions:

Durkheim

A French sociologist, Émile Durkheim, is one of the founding fathers of sociology, known for his studies on social integration, religion, and the theory of social facts.

Deviance

Behaviors or actions that violate social norms, ranging from minor infractions to serious crimes, and often resulting in social disapproval.

Conflict Crimes

Criminal acts that occur as a direct result of social, political, or armed conflict, often violating international laws of war.

Society

A group of individuals involved in persistent social interaction, or a large social grouping sharing the same geographical or social territory, typically subject to the same political authority and dominant cultural expectations.