Which of the Following Is Likely to Be True About

question 101

Multiple Choice

Which of the following is likely to be true about the left volcanic feature compared to the right one in this figure?

• A)the magma has a higher viscosity
• B)the magma has fewer silicate chains
• C)the magma probably formed at a higher temperature
• D)all of these

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Definitions:

Non-diversifiable Risk

The part of an investment's risk that cannot be eliminated through diversification, pertaining to wider market or economic factors.

Systematic Risk

The peril present throughout an entire market or a portion of the market that cannot be alleviated by spreading investments.

Non-diversifiable Risk

The portion of an investment's risk that cannot be eliminated through diversification, related to factors affecting the entire market.

Unsystematic Risk

A type of risk that affects a small number of assets, often referred to as "specific risk," and is related to issues like management performance or consumer preferences.