In the CAPM, the Only Source of Systematic Risk Is

question 36

Multiple Choice

In the CAPM, the only source of systematic risk is

• A)changes in government policy.
• B)changes in inflation rates.
• C)fluctuations in the foreign exchange rate.
• D)overall movement of the stock model.

---

Definitions:

Reaction Formation

A defense mechanism where an individual expresses feelings that are the opposite of their unconscious desires.

Phallic Stage

A stage in Freudian psychosexual development occurring roughly between the ages of three and six, where the libido is focused on the genital area.

Personal Unconscious

A term by Carl Jung referring to all information that is present within an individual’s mind, but not readily available to conscious awareness.

Unconscious

For Freud, the primary motivating force of human behavior, containing repressed memories as well as instincts, wishes, and desires that have never been conscious.