A Good That Is Neither Rival nor Exclusive Is Called

question 180

Multiple Choice

A good that is neither rival nor exclusive is called a(n) _____

• A)private good.
• B)public good.
• C)quasi-private good.
• D)external good.
• E)open-access good.

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Definitions:

Business-Specific Risk

Variation in the return on a stock investment caused by things that affect specific businesses or industries.

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be eliminated through diversification, often related to economic, political, or social factors.

Market Risk

Variation on the return on a stock investment caused by things that tend to affect all stocks.

Stand-Alone Risk

The risk associated with investing in a stock that’s held by itself, outside of a portfolio. Stand-alone risk depends on the volatility of a stock’s own return rather than on the effect its inclusion has on the volatility of the return of a portfolio.