Which One of the Following Statements Is Correct Concerning Unsystematic

question 13

Multiple Choice

Which one of the following statements is correct concerning unsystematic risk?

• A) An investor is rewarded for assuming unsystematic risk.
• B) Eliminating unsystematic risk is the responsibility of the individual investor.
• C) Unsystematic risk is rewarded when it exceeds the market level of unsystematic risk.
• D) Beta measures the level of unsystematic risk inherent in an individual security.
• E) Standard deviation is a measure of unsystematic risk.

---

Definitions:

Introverted

Describing a person predominantly concerned with their own thoughts and feelings rather than with external things.

Standard Deviation

A calculation used to determine the variability or scattering of data points in a set, indicating the extent to which these points vary from the mean value.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution, aiming to capture the center point of a data set.

Assembly Process

The sequence of operations or techniques used to assemble parts or components into a finished product.