Give the Location of the Vertical Asymptote(s) If They Exist

question 31

Multiple Choice

Give the location of the vertical asymptote(s) if they exist, and state whether function values will change sign (positive to negative or negative to positive) from one side of the asymptote to the other.

• A) x = 4, no
• B) x = 4, yes
• C) x = -1, no; x = 2, no
• D) x = -1, yes; x = 2, yes

---

Definitions:

Systematic Risk

Systematic risk refers to the inherent risk that affects the entire market or a large segment of the market, often influenced by macroeconomic factors such as inflation, political turmoil, or changes in interest rates.

Individual Security

An individual security refers to a specific financial instrument such as a stock or bond, representing ownership in a company or an obligation owed by an entity.

Market Risk Premium

The additional return expected by investors for holding a risky market portfolio instead of risk-free securities.

Unique Risk

The risk specific to an individual asset, such as a stock, which can be mitigated through diversification.