Systematic Risk

question 40

Multiple Choice

Systematic risk:

• A)Is the risk eliminated through diversification
• B)Represents the risk affecting a specific company
• C)Cannot be eliminated through diversification
• D)Is another name for risk unique to an individual asset

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choice.

Specialize

The process of concentrating on and becoming expert in a particular subject or skill, often used in the context of labor and production.

Produce

Produce generally refers to agricultural products, especially fresh fruits and vegetables, harvested for human consumption.

Lower Cost

A situation or strategy in which the production or offering of goods and services is achieved with minimal expense.