Which of the Following Statements Is Correct Regarding Total Risk

question 39

Multiple Choice

Which of the following statements is correct regarding total risk?

• A)A conglomerate will have more total risk than a firm that has one line of business.
• B)All firms have about the same total risk because they is all exposed to the same market risk.
• C)Total risk can be quantified by measuring the covariance between the firm and the overall market.
• D)None of these statements are correct.

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Definitions:

Radical Democrats

A faction within the Democratic Party, or a reference to individuals advocating for profound political, economic, or social reforms.

Direct Action

A strategy of political activism that seeks immediate remedy to perceived injustices, often through methods that bypass traditional channels like negotiation or legislation, including strikes, sit-ins, or blockades.

Wade-ins

A form of protest used during the Civil Rights Movement where African Americans would enter segregated swimming areas in order to challenge and protest racial segregation.

Freedom Rides

Civil rights demonstrations in 1961 where racially mixed groups traveled by bus into the American South to challenge the non-enforcement of United States Supreme Court decisions which ruled segregated public buses unconstitutional.