When They Are Not Keeping Track of How Much They

question 86

Multiple Choice

When they are not keeping track of how much they are eating (e.g., when they are intoxicated or emotionally absorbed in a television show) , ____.

• A) both dieters and non-dieters eat more than they would otherwise
• B) dieters eat more than they would otherwise, but non-dieters eat the same as they would otherwise
• C) dieters eat the same amount as they would otherwise, but non-dieters eat more than they would otherwise
• D) both dieters and non-dieters eat the same amount as they would otherwise

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Definitions:

Unsystematic Risk

The risk of price change in a company's stock due to company-specific events, distinguishable from market-wide risk.

Business-specific Risks

Refers to the uncertainties or potential financial losses that are directly related to the operations and environment of a particular company or industry.

Diversified Away

The reduction of risk in an investment portfolio by allocating investments among various financial instruments, industries, and other categories to minimize the impact of any single asset or risk.

Perfectly Negatively Correlated

This refers to a relationship between two variables where one variable increases as the other decreases with a correlation coefficient of -1.