The Risk Premium of a Stock Is Is Not Affected

question 96

Multiple Choice

The risk premium of a stock is is not affected by its:

• A)undiversifiable risk.
• B)typical risk.
• C)systematick risk.
• D)unsystematic risk.

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Definitions:

Self-Fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true, due to the positive feedback between belief and behavior.

Attribution

The process by which individuals explain the causes of their own and others' behavior, typically by ascribing behavior to internal dispositions or external situations.

Primary Drive

A fundamental biological need that motivates behavior, such as hunger or thirst.

Social Identity Theory

is a psychological framework that explains how people categorize themselves and others into various social groups, impacting their behavior and attitudes.