Which of the Following Statements Is True

question 58

Multiple Choice

Which of the following statements is true?

• A) Systematic, or market, risk can be reduced through diversification.
• B) Both systematic and unsystematic risk can be reduced through diversification.
• C) Unsystematic, or company, risk can be reduced through diversification.
• D) Neither systematic nor unsystematic risk can be reduced through diversification.

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Definitions:

Unemployed

Individuals who are capable of working and actively seeking work but without employment during the period of assessment.

GDP Deflator

is an economic measure of inflation that indicates the level of prices of all new, domestically produced, final goods and services in an economy.

Real GDP

The measure of a country's economic output adjusted for price changes, reflecting the value of goods and services at constant prices.

GDP

Gross Domestic Product is an indicator of a nation's economic health, showing the total value of all products and services made within a specific timeframe.