The Generic Elements of an AIS Include Inputs and Outputs

question 32

Multiple Choice

The generic elements of an AIS include inputs and outputs.Which of the following statements about them is most true?

• A)Inputs should be paper-based; outputs should be electronic.
• B)Outputs should be paper-based; inputs should be electronic.
• C)If inputs are paper-based, outputs should also be paper-based.
• D)If inputs are electronic, outputs could be either paper-based or electronic.

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Definitions:

Beta

A measure of the volatility, or systematic risk, of a security or a portfolio compared to the market as a whole.

Systematic Risk

Systematic risk refers to the overall risk affecting the entire market or market segment, making it unavoidable through diversification.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio.

Idiosyncratic Risk

The risk associated with an individual asset, which can be mitigated through diversification.