Which One of the Following Risks Is Irrelevant to a Well-Diversified

question 65

Multiple Choice

Which one of the following risks is irrelevant to a well-diversified investor?

• A)systematic risk
• B)unsystematic risk
• C)market risk
• D)nondiversifiable risk
• E)systematic portion of a surprise

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Definitions:

Behavioral Approach

The behavioral approach in management and psychology focuses on understanding and influencing human behavior through observation and empirical data.

Contingency Approaches

Management theories suggesting that the best management practices depend on the circumstances of a situation, rather than a one-size-fits-all solution.

Motivation-focused Behavior

is action driven primarily by internal or external motivation to achieve a certain outcome.

High Standards

The practice of setting superior performance or quality benchmarks as goals for oneself or others to achieve.