Which of the Following Statements Is Correct Regarding Total Risk

question 88

Multiple Choice

Which of the following statements is correct regarding total risk?

• A) The coefficient of variation is a measure of the firm's total risk.
• B) All firms have the same amount of total risk because they are all exposed to the same market risk.
• C) Conglomerates will have less total risk than a firm that has one line of business.
• D) None of the statements are correct.

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Definitions:

Gini Coefficient

A measure of the distribution of income across a population, used as an indicator of economic inequality.

Wealth Inequality

The unequal distribution of assets among residents of a country, leading to significant differences in wealth across individuals and families.

Racial Disparities

Differences that disproportionately affect individuals of certain races, particularly in areas such as health, imprisonment, education, and employment.

Thomas M. Shapiro

An American sociologist recognized for his work on racial inequality and economic disparity.