The Unexpected Return on a Security,U,is Made Up Of

question 7

Multiple Choice

The unexpected return on a security,U,is made up of:

• A) market risk and systematic risk.
• B) systematic risk and unsystematic risk.
• C) idiosyncratic risk and unsystematic risk.
• D) expected return and market risk.
• E) expected return and idiosyncratic risk.

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Definitions:

Avoidant

A personality trait characterized by a pervasive pattern of social inhibition, feelings of inadequacy, and hypersensitivity to negative evaluation.

Frustration-aggression Hypothesis

A psychological theory suggesting that frustration often leads to aggressive behavior, as aggression is considered a result of being prevented from achieving a goal.

Displacement

A psychological defense mechanism in which a person redirects a negative emotion from its original source to a less threatening recipient.

Catharsis

The process of releasing, and thereby providing relief from, strong or repressed emotions, often through art, dialogue, or exercise.