Systematic Risk Is Rewarded with a Premium in the Marketplace

question 31

Multiple Choice

Systematic risk is rewarded with a premium in the marketplace because:

• A)risk is particular to the stock or industry.
• B)it represents a random occurrence which could not have been foreseen.
• C)it is associated with market movements which cannot be eliminated through diversification.
• D)None of the above

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Definitions:

Teacher

A person who helps others acquire knowledge, competences, or values, often in an educational setting.

Neo-Freudians

Psychologists who accepted the basic foundations of Freud's theory but modified and expanded upon it to include social and cultural aspects.

Adler

Alfred Adler was an Austrian medical doctor and psychotherapist who is best known for founding the school of individual psychology.

Horney

A psychoanalyst known for her theories on neurosis, personal growth, and the concept of the "real self."