The Risk That Is Associated with an Asset's Return Arising

question 5

Multiple Choice

The risk that is associated with an asset's return arising from the covariance of the return with the return on a large,well-diversified portfolio is known as ________ risk.

• A) business
• B) exchange rate
• C) market
• D) systematic

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Definitions:

B. F. Skinner

An American psychologist known for his work in behaviorism and the development of the theory of operant conditioning, focusing on the effects of consequences on behavior.

Behaviourists

Psychologists who focus on objectively observable behaviors and discount mental processes as valid units of psychological study.

Environmental Factors

Elements external to an individual, such as social, cultural, economic, and physical conditions, that influence one's development, behavior, and well-being.

Internal Mental Events

Processes that occur within the mind, such as thought, perception, and emotion, that are not observable by others.