Unsystematic Risk

question 35

Multiple Choice

Unsystematic risk:

• A) can be effectively eliminated by portfolio diversification.
• B) is compensated for by the risk premium.
• C) is measured by beta.
• D) is measured by standard deviation.
• E) is related to the overall economy.

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Definitions:

Occupational Safety and Health Act

A United States law established in 1970 to ensure workplace safety and health standards.

Workplace Safety

Practices and policies implemented to ensure the physical and emotional well-being of employees in their working environment.

ERISA

The Employee Retirement Income Security Act of 1974, a federal law that sets minimum standards for most voluntarily established pension and health plans in private industry.

Fiduciary Responsibility

The obligation of one party to act in the best interest of another within a relationship of trust, such as that between a trustee and the beneficiaries.