Downward Communication Conveys

question 16

Multiple Choice

Downward communication conveys

• A) information about the grapevine.
• B) explanations of decisions and orders.
• C) complaints.
• D) status reports.
• E) policy questions.

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Definitions:

Portfolio Risk

Describes the uncertainty or variability of returns associated with a portfolio of investments, highlighting the combined risk of individual assets.

Systematic Risk

The risk inherent to the entire market or an entire market segment, which cannot be mitigated through diversification.

Asset Specific Risk

The risk of loss associated with a particular asset, different from market risk.

Portfolio Diversification

A risk management technique that mixes a wide variety of investments within a portfolio.