A Company's Stock Price Jumped When It Announced That Its

question 64

Multiple Choice

A company's stock price jumped when it announced that its revenue had decreased because of the quality issues of its products. This is an example of ________.

• A)market risk
• B)unsystematic risk
• C)systematic risk
• D)undiversifiable risk

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.