If Company A,a Medical Research Company,makes a New Product Discovery

question 6

Multiple Choice

If company A,a medical research company,makes a new product discovery and their stock rises 5%,this will have:

• A) no effect on Company B's, a newspaper, stock price because it is a systematic risk element.
• B) no effect on Company B's, a newspaper, stock price because it is an unsystematic risk element.
• C) a large effect on Company B's, a newspaper, stock price because it is a systematic risk element.
• D) a large effect on Company B's, a newspaper, stock price because it is an unsystematic risk element.
• E) None of these.

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Definitions:

Inductive Reactance

The opposition that an inductor presents to the change in current flow due to its stored magnetic energy, expressed in ohms.

Parallel Circuit

An electrical circuit in which components are connected across common points or junctions to provide multiple paths for current to flow.

Inductive Reactance

The opposition that an inductor presents to alternating current, due to the inductor's tendency to resist changes in current flow, measured in Ohms (Ω).

Parallel Circuit

A type of electrical circuit in which multiple components are connected across the same voltage source, allowing current to split and flow through multiple paths.