Systematic Risk

question 55

Multiple Choice

Systematic risk:

• A) is the risk eliminated through diversification.
• B) represents the risk affecting a specific company.
• C) cannot be eliminated through diversification.
• D) is another name for risk unique to an individual asset.

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Definitions:

Customer

An individual or organization that purchases goods or services from a business.

Goods Made to Order

Products that are manufactured or prepared specifically according to the customer's specifications only after the order is received.

Goods Made to Forecast

Refers to products that are manufactured in anticipation of demand, based on predictions or forecasts of future customer needs.

Mass Customization

A production strategy that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.