The Variance of Returns for a Risky Asset Is 25

question 81

Multiple Choice

The variance of returns for a risky asset is 25%.The variance of the error term,Var(e) ,is 8%.What portion of the total risk of the asset,as measured by variance,is systematic?

• A) 32%
• B) 8%
• C) 68%
• D) 25%
• E) 75%

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Definitions:

Self-Esteem Regulation

The process of maintaining and adjusting one’s feelings of self-worth and self-value in response to social interactions and personal achievements.

Personality Disorder

A type of mental disorder characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating from those accepted by the individual's culture.

Narcissistic

Characterized by excessive self-focus, self-admiration, and a lack of empathy for others, often seen in narcissistic personality disorder.