Which of the Following Statements Are Correct Concerning Diversifiable Risks

question 75

Multiple Choice

Which of the following statements are correct concerning diversifiable risks?
I.Diversifiable risks can be essentially eliminated by investing in thirty unrelated securities.
II.There is no reward for accepting diversifiable risks.
III.Diversifiable risks are generally associated with an individual firm or industry.
IV.Beta measures diversifiable risk.

• A)I and III only
• B)II and IV only
• C)I and IV only
• D)I, II and III only
• E)I, II, III, and IV

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Definitions:

Special Interest Groups

Organizations or groups that advocate for the specific interests of their members, often influencing policy decisions and public opinion.

Vote-Seeking Politicians

Politicians who prioritize actions and policies that are likely to appeal to voters, aiming to secure electoral success.

General Welfare

The overall health, prosperity, and contentment of a community or nation, often considered a government's primary goal.