In the CAPM, Unsystematic Risk

question 81

Multiple Choice

In the CAPM, unsystematic risk

• A)is also known as market risk.
• B)can be diversified away.
• C)is the risk to a stock's return that is attributable to the fluctuations in the overall stock market.
• D)is assumed to be zero.

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Definitions:

Consumer Surplus

The gap between the total price consumers are willing to pay for a good or service and the price they actually pay.

Producer Surplus

The difference between the amount producers are willing and able to supply a good for and the actual amount they receive (market price).

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive.