Unsystematic Risk Is Not Relevant, Because

question 187

Multiple Choice

Unsystematic risk is not relevant, because

• A) it does not change.
• B) it can be eliminated through diversification.
• C) it cannot be estimated.
• D) it cannot be eliminated through diversification.

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Definitions:

Producer Surplus

The difference between the amount producers are willing and able to supply goods for versus the amount they actually receive due to market prices.

Total Surplus

The sum of consumer surplus and producer surplus, representing the total net gain to society from the production and consumption of goods and services.

Tariff Revenue

Income that a government collects from imposing duties on imported goods.

Consumer Surplus

The divergence between the amount consumers are willing to pay for a product or service and the amount they actually pay.