Because Systematic Risk Measures How Much an Asset's Return Co-Moves

question 17

Multiple Choice

Because systematic risk measures how much an asset's return co-moves with the market,it ________.

• A) can be diversified away with the appropriate hedging
• B) cannot be diversified away
• C) is partially driven by idiosyncratic risk
• D) can be completely eliminated using international securities

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Definitions:

Passive Immunity

Immunity acquired by the transfer of antibodies from another individual, as through injection or maternal transfer to a fetus.

IgG

A type of antibody representing a large portion of the immune response and playing a crucial role in pathogen detection and neutralization.

IgM

An antibody that is part of the immune response, being the first type of antibody to be produced in response to an antigen.

IgA

Immunoglobulin A, a type of antibody that plays a critical role in the immune function of mucous membranes.