Systematic Risk Is Rewarded with a Premiumhigher Returns in the Market

question 58

Multiple Choice

Systematic risk is rewarded with a premiumhigher returns in the market because:

• A)it is associated with market movements which cannot be eliminated through diversification
• B)it is a microeconomic risk
• C)that risk is unique to a firm or an industry
• D)none of the above

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Definitions:

Continuous Improvement

A management philosophy focusing on the incremental improvement of products, services, and processes over time.

Lean Business Model

An approach to business aimed at creating value for customers with minimal waste and resources.

Planning (P)

The process of setting objectives, developing strategies, and outlining tasks and schedules to achieve the goals.

Implementation (I)

The process of putting a decision or plan into effect; the action that must follow any preliminary thinking in order for something to actually happen.