Bad Managerial Judgments or Unforeseen Negative Events That Happen to a Firm

question 32

True/False

Bad managerial judgments or unforeseen negative events that happen to a firm are defined as "company-specific," or "unsystematic," events, and their effects on investment risk can in theory be diversified away.

---

Definitions:

Rural Farming Communities

Regions or populations that predominantly engage in agriculture and reside in countryside areas, often characterized by a close sense of community.

Low Income

A term used to describe individuals or families whose earnings are near or below the poverty line, affecting their ability to afford basic needs.

Blood-Borne Pathogens

Infectious microorganisms in human blood that can cause disease, such as HIV, hepatitis B, and hepatitis C.

Musculoskeletal Injuries

Damage or harm inflicted to the body's muscles, bones, ligaments, tendons, or nerves, often due to physical activity or accidents.