Systematic Risk Is Defined As

question 37

Multiple Choice

Systematic risk is defined as:

• A) a risk that specifically affects an asset or small group of assets.
• B) any risk that affects a large number of assets.
• C) any risk that has a huge impact on the return of a security.
• D) the random component of return.

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Definitions:

Output Units

Quantitative measures of production, representing the number of units of goods or services produced.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.

Long-run Average Total Cost

The average cost per unit of output in the long run, where all inputs are considered variable and firms can adjust all factors of production.

Managerial Bureaucracy

A type of organizational structure that is characterized by a formal division of responsibilities, a clear hierarchy, and a detailed set of rules and procedures.