Kate and Emily Have Both Been Admitted to Their First

question 72

Multiple Choice

Kate and Emily have both been admitted to their first choice university. The university is about three hours from home, which Kate thinks is great because it's close enough if she needs something, but far enough to be able to establish independence. Emily isn't as sure that it's great, for the same reasons. Who will find attending university more stressful?

• A)Kate
• B)Emily
• C)They will both find it equally stressful
• D)Neither will find it stressful

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Definitions:

Unsystematic Risk

The risk associated with individual assets, such as a company's stock, that can be mitigated through diversification.

Beta

A standard for evaluating the unpredictability, or fundamental risk, of a security or diversified portfolio in contrast with the entire market.

Non-diversifiable Risk

The portion of risk that can't be eliminated through diversification, often related to systemic factors affecting all investments.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values.