The Cost of Transporting a Barrel of Petroleum by Pipeline

question 30

Multiple Choice

The cost of transporting a barrel of petroleum by pipeline from Houston to the New York harbor is ______.

• A)$1
• B)$2
• C)$3
• D)$4

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Definitions:

Unsystematic Risk

The risk associated with a particular company or industry, also known as idiosyncratic risk or specific risk.

Retail Industry

The sector of the economy that sells consumer goods directly to customers.

Systematic Risk

The inherent risk associated with the entire market or market segment, which cannot be avoided through diversification.

Diversified Investor

An investor who spreads their investments across various assets, industries, or geographies to reduce risk.