The Return on an Asset Is the Change in Its

question 77

True/False

The return on an asset is the change in its value plus any cash distribution over a given period of time, expressed as a percentage of its ending value.

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Definitions:

Systematic Risk

The danger that affects the whole market or a specific section of the market, referred to as market risk, which diversification cannot mitigate.

Productivity

The efficiency of production of goods or services, measured by the output per unit of input, such as labor or capital.

Unique Risk

Unique risk, also known as unsystematic risk, is the risk associated with individual assets, specific to a company or industry, which can be reduced through diversification.