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Daniel Sells Medical Equipment,and He Has Been Advised to Contact

question 42

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Daniel sells medical equipment,and he has been advised to contact the comptroller at the Cedar Bluff Public Hospital because the hospital plans on building and equipping 150 medical and dental offices in its new health care complex.Daniel has not yet made the sales call because he hates to be pushy.Daniel is experiencing:


Definitions:

Unsystematic Risk

The risk of price changes in a company's stock due to factors specific to the company, as opposed to market-wide factors.

Treasury Bills

Short-term U.S. government debt obligations maturing in one year or less, considered a safe and liquid investment.

Risky Portfolio

A collection of investments that has a higher standard deviation, but potentially higher returns.

Unsystematic Portion

The segment of risk in an investment portfolio that can be mitigated through diversification, specific to individual securities.

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