An Investor Who Buys a Large Number of Shares from Different

question 86

Multiple Choice

An investor who buys a large number of shares from different companies and from many different industries will:

• A) abolish systematic risk.
• B) minimise unsystematic risk.
• C) minimise credit risk.
• D) minimise price risk.

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Definitions:

Caldera

A vast volcanic hollow created by a significant explosion that results in the collapse of the volcano's opening.

Pyroclastic Deposits

Accumulations of volcanic materials, such as ash, tephra, and lava bombs, ejected explosively from a volcano.

Volcanic Mudflows

Volcanic mudflows, also known as lahars, are fast-moving, deadly flows of mud, rocky debris, and water that originate from volcanic eruptions or the melting of snow and ice atop volcanoes.

Composite Volcano

A volcano composed of layers of hardened lava, tephra, and volcanic ash, typically having a steep profile and explosive eruptions.