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

question 89

Multiple Choice

Risk that affects a large number of assets,each to a greater or lesser degree,is called ________ risk.

• A)idiosyncratic
• B)diversifiable
• C)systematic
• D)asset-specific
• E)total

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Definitions:

Hedge Cost Risk

Hedge cost risk refers to the potential variability in the expense of hedging strategies, which are used to mitigate financial risks associated with currency, interest rates, or commodities.

Bushels

A unit of volume that is used primarily in the United States to measure quantities of agricultural commodities and dry goods.

Cereal Company

A business entity that manufactures, markets, and sells cereal products, which are typically grain-based foods consumed for breakfast.

Exchange Rates

The value of one currency expressed in terms of another currency.