Examlex
Which statement is false?
Business-Specific Risk
Variation in the return on a stock investment caused by things that affect specific businesses or industries.
Systematic Risk
The risk inherent to the entire market or market segment, which cannot be eliminated through diversification, often related to economic, political, or social factors.
Market Risk
Variation on the return on a stock investment caused by things that tend to affect all stocks.
Stand-Alone Risk
The risk associated with investing in a stock that’s held by itself, outside of a portfolio. Stand-alone risk depends on the volatility of a stock’s own return rather than on the effect its inclusion has on the volatility of the return of a portfolio.
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