Roger Determines That If Aim Corporation Has High Revenues, Then

question 88

Multiple Choice

Roger determines that if Aim Corporation has high revenues, then Zest Corporation will have low revenues, and that if Aim Corporation has low revenues, Zest Corporation will have high revenues. He buys stock in both corporations.

• A)He has reduced firm-specific risk but not market risk.
• B)He has reduced market risk, but not firm-specific risk.
• C)He had reduce both firm-specific risk and market risk.
• D)He has reduced neither firm-specific risk nor market risk.

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Definitions:

Magnification

The process of making something appear larger than it actually is, often using lenses or microscopes.

Carbamates

A group of organic compounds used as insecticides, herbicides, or in pharmaceuticals, derived from carbamic acid.

Herbicides

Chemical substances used to control or kill unwanted plants (weeds), often used in agriculture and landscaping.

Systemic Chemicals

Chemical substances that are absorbed by an organism, affecting its entire system rather than a localized area, often used in plants to provide internal protection against pests.