Which of the Following Is True Regarding Drug Testing

question 71

Multiple Choice

Which of the following is true regarding drug testing?

• A) Applicants were twice as likely to be tested for alcohol use as drug use.
• B) The rate of drug testing has declined slightly in recent years.
• C) Upper-level employees are more likely to be tested than lower-level employees.
• D) All of the above are true.

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Definitions:

Firm-specific Risk

The risk associated with an individual company, distinct from market risk, that can affect the company's stock price.

Diversifiable Risk

The portion of investment risk that can be reduced or eliminated through diversification in an investment portfolio.

Unique Risk

Another term for diversifiable risk, emphasizing the idea that this risk is specific to an individual investment and not the market as a whole.

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk, which cannot be eliminated through diversification.