Risk That Is Linked Across Outcomes Is Called

question 21

Multiple Choice

Risk that is linked across outcomes is called:

• A)diversifiable risk.
• B)common risk.
• C)uncorrelated risk.
• D)independent risk.
• E)systematic risk.

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Definitions:

Average Person

A hypothetical individual who represents a standard or norm in behavior, judgment, and values.

Homeowner's Policy

An insurance policy that provides coverage for damages to a homeowner's property, including structures and contents, and often liability for accidents.

Real Property

Land and anything permanently attached to it, such as buildings and fixtures, considered a form of real estate.

Personal Property

Items owned by an individual or entity that are movable and not fixed to real estate, such as furniture, vehicles, and electronics.