A Risk That Affects a Large Number of Assets,each to a Greater

question 86

Multiple Choice

A risk that affects a large number of assets,each to a greater or lesser degree is called:

• A) total risk.
• B) systematic risk.
• C) unsystematic risk.
• D) economic risk.
• E) standard error.

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Definitions:

Magnification

In cognitive psychology, it refers to a distortion where an individual exaggerates the negatives or minimizes the positives of a situation.

Beck

Beck commonly refers to Aaron T. Beck, a psychiatrist known for developing cognitive therapy, a foundation for cognitive-behavioral therapy.

Cognitive Psychologist

A professional in psychology who studies mental processes such as "attention, language use, memory, perception, problem solving, creativity, and thinking."

Distorted Thought Processes

Patterns of thinking that are irrational, negative, and often unrealistic, which can affect perception and lead to mental health issues like anxiety or depression.