Systematic Risk Is Defined As

question 37

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.

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Definitions:

Universal Generalization

A logical inference rule stating that if something is true for all cases, then it is true in general.

Quantifier Negation

The logical operation of negating or reversing the scope of a quantifier in a statement, changing its encompassing range over the subjects it addresses.

Existential Generalization

A form of inference where from a specific case one concludes the existence of an instance satisfying a particular condition.

Existential Instantiation

A logical principle stating that if something is said to exist, then a specific instance of that thing must also exist.