Shares Have Both Diversifiable Risk and Undiversifiable Risk, but Only

question 41

True/False

Shares have both diversifiable risk and undiversifiable risk, but only undiversifiable risk is rewarded with higher expected returns.

---

Definitions:

Positive Discipline

A workplace discipline strategy focusing on constructive feedback and encouraging positive behavior change rather than punishment.

Cooperative Environment

A workplace or organizational culture that emphasizes collaboration and team-oriented goals.

Open-Door Policy

A management approach where executives encourage open communication and feedback from employees at all levels within the organization.

Consistent

Characterized by steadiness, reliability, and uniformity in decision-making, actions, or performance over time.