Which of the Following Is a Characteristic of Unsystematic Risk

question 92

Multiple Choice

Which of the following is a characteristic of unsystematic risk?

• A) Affects one or a few firms
• B) Includes events like oil price shocks
• C) Cannot be reduced though diversification
• D) Is the only risk that investors in the market portfolio worry about

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Definitions:

Current Liability

Financial obligations or debts that a company is expected to pay within one year, including accounts payable, wages, and short-term loans.

Internal Controls

Methods and policies established by a company to guarantee the accuracy of finance and accounting data, encourage responsibility, and deter deceptive practices.

Cash Payments

Outflows of cash by a business to settle obligations, such as paying expenses, debts, or purchasing assets.

Payroll Register

A multicolumn report used to assemble and summarize payroll data at the end of each payroll period.