Which of the Following Activities Would Most Likely Affect a Particular

question 52

Multiple Choice

Which of the following activities would most likely affect a particular company's systematic risk?

• A)The company's CEO resigns.
• B)The firm's sales this year probably will substantially lower than the amount forecasted by senior management.
• C)According to the U.S. government, inflation is expected to increase during the next five years.
• D)There is a good chance that the firm will experience a long labor strike in the near future.
• E)Next year the company plans to introduce a new product line that has a 30 percent chance of failing.

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Definitions:

Cognitive-Behavioral Therapy

A form of psychotherapy that treats problems by modifying dysfunctional emotions, behaviors, and thoughts.

Cluster C

A category within the Diagnostic and Statistical Manual of Mental Disorders, referring to personality disorders characterized by anxious and fearful behavior.

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a publication by the American Psychiatric Association that classifies and provides criteria for mental disorders.

Big Five Personality

A theory that describes personality through five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.