The Alternative-Outcome Relationship Is Based Upon the Following Conditions: __________

question 8

Multiple Choice

The alternative-outcome relationship is based upon the following conditions: __________.

• A)certainty,uncertainty,and risk
• B)nonprogrammed,programmed,and hybrid
• C)opportunity,crisis,and routine
• D)chance of failure,importance of outcome,relative power of the decision maker

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Definitions:

Unsystematic Risk

The risk that is unique to a specific company or industry.

Systematic Risk

The danger that affects the whole market or a specific market segment, referred to as market risk, is unremovable by diversifying investments.

Business-Specific Risk

Refers to the uncertainties faced by a company due to the industry it operates in or the nature of its business operations.

Security Market Line

A representation in financial markets that shows the relationship between risk (as measured by beta) and the expected return of a portfolio or individual security.