A(n)____________ Is a Statement About the Cause of an Event

question 46

Multiple Choice

A(n) ____________ is a statement about the cause of an event or behavior.

• A)causal inference
• B)experiment
• C)construct
• D)correlation

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Definitions:

Market Risk

The risk of losses in investments due to factors that affect the entire market or asset class, such as economic changes or political events.

Firm-specific Risk

The type of risk that affects a particular company or industry, also known as unsystematic risk.

Diversified Away

The risk that can be reduced or eliminated in a portfolio through investments in a variety of assets, thus not tied to the performance of a single investment.

Market Risk

The risk of losses in positions arising from movements in market prices.