Independent Risk Is Also Called

question 79

Multiple Choice

Independent risk is also called

• A) market risk.
• B) systematic risk.
• C) undiversifiable risk.
• D) idiosyncratic risk.

---

Definitions:

Stock Index Futures

Futures contracts where the underlying asset is a stock index, allowing investors to speculate on the future value of the index.

Transactions Costs

Expenses incurred when buying or selling securities, which can include brokerage fees, commissions, and other charges.

Leverage

Utilizing borrowed funds to amplify the possible returns on an investment.

Portfolio's Beta

A measure of the overall volatility or risk of an investment portfolio in comparison to the market as a whole.