Unsystematic Risk

question 96

Multiple Choice

Unsystematic risk:

• A)can be effectively eliminated through portfolio diversification.
• B)is compensated for by the risk premium.
• C)is measured by beta.
• D)cannot be avoided if you wish to participate in the financial markets.
• E)is related to the overall economy.

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Definitions:

Offspring

The product of reproduction, a new organism produced by one or more parents.

Meiosis

A process of cell division in sexually reproducing organisms that reduces the number of chromosomes in reproductive cells to half, leading to the production of gametes or spores.

Parental Chromosome Number

The parental chromosome number refers to the specific number of chromosomes found in the genetic material an organism inherits from its parents, typically half from each.

Parent Cell

The cell that divides to give rise to daughter cells during cell division.