The Portion of an Asset's Risk That Is Attributable to Firm-Specific

question 21

Multiple Choice

The portion of an asset's risk that is attributable to firm-specific, random causes is called

• A) unsystematic risk.
• B) nondiversifiable risk.
• C) systematic risk.
• D) none of the above.

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Definitions:

Student t Distribution

A probability distribution used in significance testing, especially useful with small sample sizes or unknown population variances.

Symmetrical

A shape or object that is exactly the same on both sides of a dividing line or around a center point.

Degrees of Freedom

Refers to the number of independent values or quantities that can vary in an analysis without violating any constraints.

Number

A mathematical object used to count, measure, and label.