10-53 Considering the Capital Asset Pricing Model,which of the Following

question 38

Multiple Choice

10-53 Considering the Capital Asset Pricing Model,which of the following observations is incorrect?

• A)In a well-diversified portfolio,unsystematic risk can be largely diversified away.
• B)Systematic risk is considered to be a diversifiable risk.
• C)Total risk is the sum of systematic risk and unsystematic risk.
• D)Systematic risk reflects the comovement of a stock with the market portfolio.
• E)Unsystematic risk is specific to the firm.

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Definitions:

Job Market

The marketplace in which employers find workers and workers find jobs. It includes a variety of industries, roles, and employment types, and is influenced by economic conditions.

Organizational Culture

The cognitive component that includes the shared assumptions and beliefs of the organization.

Organizational Climate

The general perception or 'feel' of the workplace environment as perceived by employees, influenced by management practices, policies, and culture.

Stable

Characterizes something that is not likely to change or falter; having consistency or permanence.