Use the Information for the Question(s)below

question 56

Multiple Choice

Use the information for the question(s) below.
Consider an economy with two types of firms, S and U. The S firms always move together, but U firms move independently of each other. For both types of firms there is a 70% probability that the firm will have a 20% return and a 30% probability that the firm will have a -30% return.
-If the Reserve Bank was to change from an expansionary to contractionary monetary policy, this would be an example of:

• A)unsystematic risk.
• B)diversification risk.
• C)systematic risk.
• D)independent risk.

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Definitions:

Feature Detectors

Neurons in the brain that identify specific features of a stimulus, such as shape, angle, or movement.

Bipolar Cells

Neurons in the retina that transmit signals from the photoreceptors to the ganglion cells.

Blindsight

A phenomenon in which people who are perceptually blind in certain areas of their visual field demonstrate some response to visual stimuli without consciously perceiving them.

Gestalt

An organized whole. Gestalt psychologists emphasized our tendency to integrate pieces of information into meaningful wholes.