Systematic Risk Can Be Defined As

question 33

Multiple Choice

Systematic risk can be defined as:

• A) the total risk to the firm.
• B) the risk of the individual security.
• C) the risk of the market in general.
• D) the risk that can be systematically diversified away.

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Definitions:

Long Run

An economic term referring to a period during which all inputs or factors of production can be varied, and there are no fixed constraints.

Average Fixed Costs

The fixed costs (those not changing with output level) of production divided by the quantity of output produced.

Marginal Cost

The extra expense incurred from manufacturing an additional unit of a product or service.

Price of Labor

The compensation paid to employees for their work or services, typically measured in terms of wages or salary.