Analysts Deciding Between Investments Must Consider the Comparative Risks

question 136

Multiple Choice

Analysts deciding between investments must consider the comparative risks.Which of the following is/are not firm-specific factors that affect the risk of business firms?

• A)labor strikes
• B)loss of facilities due to fire
• C)poor health of key managerial personnel
• D)loss of facilities due to earthquake
• E)unemployment

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Definitions:

Scatterplot

A type of graph used to display values for two variables for a set of data, showing the relationship between them.

Negative Correlation

A correlation between two variables where one's gain is the other's loss.

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases, and vice versa.

Direct Correlation

A positive relationship between two variables such that as one variable increases, the other also increases.