Which of the Following Is a Diversifiable Risk

question 98

Multiple Choice

Which of the following is a diversifiable risk?

• A)the risk that oil prices rise,increasing production costs
• B)the risk that the economy slows,reducing demand for your firm's products
• C)the risk that your new product will not receive regulatory approval
• D)the risk that the Bank of Canada raises interest rates
• E)the risk that a new government is elected and raises corporate taxes

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Definitions:

Confidence Interval Estimate

A statistical method used to express the uncertainty associated with a sample statistic by specifying an interval likely to encompass the true population parameter.

Standard Error

A statistic that measures the accuracy with which a sample distribution represents a population.

Sample Size

The number of observations or replicates included in a sample from a population for the purpose of statistical analysis.

Correlation Coefficient

A numerical measure that quantifies the degree of relationship or dependence between two variables, typically ranging from -1 to 1.