Diversifiable Risk Refers to Risk

question 117

Multiple Choice

Diversifiable risk refers to risk

• A)faced by a portfolio in general.
• B)that can be reduced with appropriate fiscal and monetary policy.
• C)posed by business cycle fluctuations.
• D)specific to a particular investment.

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Definitions:

Shareholders

Individuals or entities that own shares in a corporation, thus holding a portion of the corporation's ownership.

Poison Pill

A defensive strategy used by companies to deter hostile takeovers by making the company less attractive to the potential acquirer.

Takeover Bid

An offer made by an individual, group, or company to purchase a significant portion or all of the target company's shares in order to gain control of the target company.

Hostile Takeover

An acquisition attempt by a company or individual that is opposed by the target company's management and board of directors.