You Are Recalculating the Risk of ACE Stock in Relation

question 41

Multiple Choice

You are recalculating the risk of ACE stock in relation to the market index and you find the ratio of the systematic variance to the total variance has risen.You must also find that the ____________.

• A) covariance between ACE and the market has fallen
• B) correlation coefficient between ACE and the market has fallen
• C) correlation coefficient between ACE and the market has risen
• D) unsystematic risk of ACE has risen

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Definitions:

Repeated Statements

The act of saying or presenting the same information multiple times to reinforce a message or ensure understanding.

Altruism

The belief in or practice of disinterested and selfless concern for the well-being of others.

Selfless Action

An act performed with no expectation of reward or recognition, often motivated by a desire to help or benefit others.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.