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:

Adjusting Entries

Journal entries made at the end of an accounting period to allocate revenue and expenses to the period in which they actually occurred.

Supplies Expense

The cost recognized in the accounting period for supplies used, regardless of when the supplies were purchased.

Landscaping Revenue

Income generated from services related to the modification, maintenance, and beautification of outdoor landscapes.

Equity Offerings

The process of issuing new shares of stock to raise capital from public investors.