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:

Bankruptcy Law

The area of law dealing with situations where individuals or entities cannot repay their debts and seek relief through legal proceedings.

Bankruptcy Abuse Prevention and Consumer Protection Act

A U.S. law enacted in 2005 aimed at curtailing bankruptcy filings considered abusive and providing better consumer protections.

Bankruptcy Code

The set of laws under the Title 11 of the United States Code that governs bankruptcy processes and proceedings in the United States.

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