Which of the Following Statements Is True

question 10

Multiple Choice

Which of the following statements is true?

• A)Systematic risk reflects the co-movement of a stock with the market portfolio, reflected by the stock's vega and the volatility of the market portfolio.
• B)Unsystematic risk reflects the co-movement of a stock with the market portfolio, reflected by the stock's vega and the volatility of the market portfolio.
• C)Systematic risk reflects the co-movement of a stock with the market portfolio, reflected by the stock's beta and the volatility of the market portfolio.
• D)Unsystematic risk reflects the co-movement of a stock with the market portfolio, reflected by the stock's beta and the volatility of the market portfolio.

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Definitions:

DC Motor

An electric motor that runs on direct current (DC) electricity, converting DC electrical energy into mechanical energy.

Shunt

A low-resistance connection between two points in an electric circuit that forms an alternative path for a portion of the current.

Compound Motor

A motor that contains both series and shunt field windings.

Cumulative

Increasing or grown by accumulation or successive additions.