The Unsystematic Risk of a Specific Security

question 51

Multiple Choice

The unsystematic risk of a specific security

• A)is likely to be higher in an increasing market.
• B)results from factors unique to the firm.
• C)depends on market volatility.
• D)cannot be diversified away.
• E)none of the above.

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Definitions:

Months

Units of time in calendars that approximate the period of the lunar cycle, usually used as a measurement of the duration of events or periods of life.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, where an association is made between a behavior and a consequence for that behavior.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus, leading to a learned response.

Neurogenesis

The process of generating new neurons in the brain, which can occur in certain brain regions during adulthood.