The Lower the Degree of Unsystematic Risk,the

question 81

Multiple Choice

The lower the degree of unsystematic risk,the:

• A) higher the diversification of a share portfolio.
• B) lower a share's beta coefficient.
• C) higher a share's beta coefficient.
• D) lower the diversification of a share portfolio.

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Definitions:

Functional Fixedness

A problem-solving phenomenon in which people have difficulty in seeing alternate uses for common objects.

String Problem

A type of problem-solving task that involves finding solutions or patterns within sequences of characters or symbols.

Pendulum

A weight suspended from a pivot so that it can swing freely, often used in clocks for regulating time.