Which of the Following Are Problems Associated with the BIS

question 54

Multiple Choice

Which of the following are problems associated with the BIS approach to calculating capital requirements for equities?

• A)The approach assumes the same systematic risk factor for every stock.
• B)The approach assumes the same unsystematic risk factor for every stock.
• C)The approach does not fully consider the benefits from portfolio diversification.
• D)The approach assumes the same systematic risk factor for every stock and the approach does not fully consider the benefits from portfolio diversification.

---

Definitions:

Stono Rebellion

A significant slave uprising that occurred in 1739 in South Carolina, representing one of the earliest and most violent acts of resistance against slavery in the American colonies.

Enslavement

The act of making someone a slave or the state of being held in bondages such as forced labor without freedoms.

The War of Jenkins' Ear

A conflict between Britain and Spain (1739-1748), originating from the maltreatment of British sailors and named after an incident involving Captain Robert Jenkins.

Caribbean Smuggling

The illegal trade or transport of goods, people, or substances in and out of the Caribbean, often involving drugs, arms, and historical trade bans like those in the sugar and rum industries.