The Risk That Cannot Be Diversified Away Is

question 73

Multiple Choice

The risk that cannot be diversified away is

• A) firm-specific risk.
• B) unique.
• C) nonsystematic risk.
• D) market risk.

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Definitions:

Economic Efficiency

A state in which resources are allocated in a way that maximizes the total benefit received by society from those resources.

Consumer Surplus

The divergence between the price consumers are willing to pay and what they really spend on a good or service.

Floor Price

The minimum price set by regulation, often by the government, below which a commodity cannot legally be sold in the market.

Market Supply

The total amount of a specific good or service that is available to consumers in a market at a given time and price.