________ Risk Is Simply the Variability in the Returns of an Investment

question 255

Multiple Choice

________ risk is simply the variability in the returns of an investment that is due to events that are unrelated to the overall market.

• A)Systematic
• B)Unsystematic
• C)Non-diversifiable
• D)Portfolio

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Definitions:

Creditor Beneficiary

A creditor beneficiary is a third party that benefits from a contract in which one party (the promisor) agrees to pay a debt owed to the beneficiary by the other party (promisee).

Incidental Beneficiary

A third party who might benefit from a contract between two other parties but does not have legal rights to enforce the contract terms.

Assignment

The transfer of rights, duties, or property from one party to another, often used in the context of contracts or real estate.

Third-Party Beneficiary

An individual or entity that is not directly involved in a contract but stands to benefit from it as specified by the contracting parties.