Which of the Following Statements Is Correct Regarding Total Risk

question 118

Multiple Choice

Which of the following statements is correct regarding total risk?

• A)A conglomerate will have more total risk than a firm that has one line of business.
• B)All firms have about the same total risk because they are all exposed to the same market risk.
• C)Total risk can be quantified by measuring the covariance between the firm and the overall market.
• D)None of these statements is correct.

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Definitions:

Multi-provider Clinic

A healthcare facility where multiple healthcare providers offer a variety of medical services under one roof.

Physicians

Medical professionals licensed to diagnose and treat illness, disease, and injuries.

National Center for Competency Testing (NCCT)

An organization that provides certification for healthcare professionals, ensuring they meet specific competency standards.

Certification Agency

An organization that evaluates and verifies the competence or quality of individuals or companies according to a set of standards or criteria.