Which One of the Following Qualifies as Diversifiable Risk

question 40

Multiple Choice

Which one of the following qualifies as diversifiable risk?

• A)market risk
• B)systematic risk associated with an individual security
• C)market crash
• D)the systematic portion of an expected return
• E)the unsystematic portion of an unexpected return

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Definitions:

Conditioning

A behavioral process whereby a response becomes more frequent or predictable in a given environment due to reinforcement.

Twin Studies

A research method in which researchers assess hereditary influence by comparing the resemblance of identical twins and fraternal twins on a trait.

Hereditary Influences

The impact of genetic factors inherited from parents on an individual's traits, behavior, and health.

Identical Twins

Twins that develop from a single fertilized egg that splits and forms two embryos, sharing 100% of their DNA.