Which One of the Following Risks Is Irrelevant to a Well-Diversified

question 65

Multiple Choice

Which one of the following risks is irrelevant to a well-diversified investor?

• A)systematic risk
• B)unsystematic risk
• C)market risk
• D)nondiversifiable risk
• E)systematic portion of a surprise

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Definitions:

Mega Deficits

Extremely large financial shortfalls, often referring to government budgets where expenditures far exceed revenues.

Federal Budget

An estimate of government expenditures and revenues for a specific fiscal year, as determined by the President and Congress in the United States.

Aggregate Demand

The total demand for all goods and services within a particular market or economy.

Aggregate Supply

The total supply of goods and services that firms in a national economy plan on selling during a specific time period.