Because Investors Can Eliminate Unsystematic Risk "For Free" by Diversifying

question 29

Multiple Choice

Because investors can eliminate unsystematic risk "for free" by diversifying their portfolios,they ________ a risk premium for bearing it.

• A)do not require
• B)require
• C)are indifferent about
• D)none of the above

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Definitions:

Motivation

The internal drive or external stimuli that prompt individuals to act or behave in a certain manner towards achieving specific goals.

Desire For Recognition

The human motivation to be acknowledged and valued by others for one's efforts or achievements.

Organizational Culture

The shared values, beliefs, and practices that shape the social and psychological environment of a business or organization.

Reacts To Major Events

Refers to the process of responding or adjusting to significant occurrences or changes in the environment.