Total Security Risk Is the Sum of a Security's Nondiversifiable

question 125

True/False

Total security risk is the sum of a security's nondiversifiable and diversifiable risk.

---

Definitions:

Loan

Money that is borrowed from a bank, financial institution, or individual under the condition that it will be paid back with interest.

Compounded Quarterly

Compounded quarterly refers to calculating interest on the principal amount and the accumulated interest every quarter, or four times a year.

Quarterly Withdrawals

Withdrawals from an account or fund that occur four times each year, typically every three months.

Education Fund

A savings or investment account set aside for the purpose of funding educational expenses.