Systematic Risk Is Defined As

question 47

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.
• E)None of the above.

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Definitions:

Economy of Scale

The cost advantages that enterprises obtain due to their scale of operation, typically resulting in decreased per-unit cost as production increases.

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be used by everyone and one person's use doesn't reduce its availability to others.

Total Damage

The cumulative harm or loss resulting from an action or event, encompassing both material and immaterial impacts.

Market Level

A term denoting the scope or extent of a given market, which can range from local to global, affecting strategies and operations of businesses within.