Systematic Risk Is

question 14

Multiple Choice

Systematic risk is:

• A)totally eliminated when a portfolio is fully diversified.
• B)defined as the total risk associated with surprise events.
• C)risk that affects a limited number of securities.
• D)measured by beta.
• E)measured by standard deviation.

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Definitions:

Feedback

Information provided regarding aspects of one’s performance or understanding, intended to guide future improvements.

Criticism

The analysis and judgment of the merits and faults of a literary or artistic work, or the expression of disapproval of someone or something based on perceived faults or mistakes.

Constructive Feedback

Analysis centered on the methods and results of communication, rather than the individuals participating.

Destructive Feedback

Criticism delivered with no guidance to stimulate improvement.