Shawn Determines That If Lexall Corporation Has High Revenues,then Waters

question 63

Multiple Choice

Shawn determines that if Lexall Corporation has high revenues,then Waters Corporation will have low revenues,and that if Lexall Corporation has low revenues,then Waters Corporation will have high revenues.Shawn buys stock in both corporations.

• A)He has reduced firm-specific risk but not market risk.
• B)He has reduced market risk,but not firm-specific risk.
• C)He had reduce both firm-specific risk and market risk.
• D)He has reduced neither firm-specific risk nor market risk.

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Definitions:

Phobia

An intense and irrational fear of specific situations, objects, or activities that results in a compelling desire to avoid the dreaded subject or situation.

Expressway Overpasses

Expressway overpasses are structures that allow roads or highways to cross over each other or other obstacles without interfering with the flow of traffic on either route.

Unreasonable

Not guided by or based on good sense or rational thinking.

Bipolar Disorder

A mental illness characterized by significant mood swings, including episodes of mania and depression.