Systematic Risks

question 60

Multiple Choice

Systematic risks

• A) can be eliminated by investing in a variety of economic sectors.
• B) are forces that affect all investment categories.
• C) result from random firm-specific events.
• D) are unique to certain investment vehicles.

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Definitions:

Incorrect Majority

A situation where the larger part of a group holds a false belief or makes a wrong decision, potentially influencing others to follow suit.

Conformity Pressures

The social forces that compel individuals to adapt their thoughts, feelings, or behaviors in order to align with those of a group or society.

Online Groups

Communities or collectives that interact and communicate primarily through digital platforms, such as forums, social media, or messaging apps.

Compliance

The act of conforming to a wish, request, or law, often due to social pressure or authority without necessarily agreeing with it.