Unsystematic Risk

question 96

Multiple Choice

Unsystematic risk:

• A)can be effectively eliminated through portfolio diversification.
• B)is compensated for by the risk premium.
• C)is measured by beta.
• D)cannot be avoided if you wish to participate in the financial markets.
• E)is related to the overall economy.

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Definitions:

Direct Drive

A system where a motor or engine directly drives a machine's mechanism without the use of gears, belts, or chains.

Torque Converters

A device in an automatic transmission that transfers rotating power from the engine to the transmission by using a fluid coupling.

Gear Shifting

The process of changing gears in a vehicle's transmission to optimize performance and fuel efficiency or adapt to driving conditions.

Type B

Often refers to a classification or category in various contexts, such as blood type, personality theories, or safety levels in equipment standards, requiring specifics to define completely.