Unique Risk Is Also Referred to as

question 53

Multiple Choice

Unique risk is also referred to as

• A) systematic risk,diversifiable risk.
• B) systematic risk,market risk.
• C) diversifiable risk,market risk.
• D) diversifiable risk,firm-specific risk.
• E) market risk.

---

Definitions:

Residual Dividend Model

A strategy for determining dividend payments based on the residual or leftover earnings after all operational and expansion costs have been met.

Clientele Effect

A theory suggesting that changes in dividend policy will attract different types of investors based on their personal preferences for dividend payouts.

Stock Repurchases

This is a process where a company buys back its own shares from the marketplace, potentially reducing the total number of outstanding shares and often seen as a way to return value to shareholders.

Capital Gains Taxes

Taxes on the profit made from selling an asset for more than its purchase price.