In the CAPM, Systematic Risk

question 42

Multiple Choice

In the CAPM, systematic risk

• A)is also known as idiosyncratic risk.
• B)can be diversified away.
• C)is also known as market risk.
• D)is the risk to a stock's return that is not attributable to the fluctuations in the overall stock market.

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Definitions:

New Deal

A collection of initiatives, including public construction efforts, economic restructuring, and regulatory measures, implemented by President Franklin D. Roosevelt in the United States throughout the 1930s as a response to the Great Depression.

Unregulated Capitalism

An economic system without governmental oversight and regulation, where the market forces are unrestricted and determine the allocation of resources and distribution of goods.

Resettlement Administration

A New Deal agency created in 1935 designed to relocate struggling urban and rural families to communities planned by the federal government.

Sharecroppers

Individuals who farm land owned by another and pay rent either in cash or shares of the crop, often under conditions that perpetuate poverty and dependency.