Which of the Following Are Problems Associated with the BIS

question 54

Multiple Choice

Which of the following are problems associated with the BIS approach to calculating capital requirements for equities?

• A)The approach assumes the same systematic risk factor for every stock.
• B)The approach assumes the same unsystematic risk factor for every stock.
• C)The approach does not fully consider the benefits from portfolio diversification.
• D)The approach assumes the same systematic risk factor for every stock and the approach does not fully consider the benefits from portfolio diversification.

---

Definitions:

Credit Card Discount

A fee charged by credit card processors to merchants for accepting credit card payments, often a percentage of the transaction value.

Net Sales

Revenue from sales minus returns, allowances, and discounts.

Net Income

The residual financial gain of a company post all expenses and taxes being deducted from the revenue.

Net Sales Revenue

Net Sales Revenue is the total revenue from sales of goods or services after deducting returned goods and any allowances or discounts.