The Acronym APV Stands For

question 37

Multiple Choice

The acronym APV stands for:

• A) applied present value.
• B) all purpose variable.
• C) accepted project verified.
• D) adjusted present value.

---

Definitions:

Systematic Risk

The inherent risk affecting the overall market or a particular sector, which cannot be eliminated through diversification.

Market Risk

The risk of losses in investments due to factors that affect the entire market or asset class, such as economic changes or political events.

Firm-specific Risk

The type of risk that affects a particular company or industry, also known as unsystematic risk.

Diversified Away

The risk that can be reduced or eliminated in a portfolio through investments in a variety of assets, thus not tied to the performance of a single investment.