Which of the Following Statements Is True

question 58

Multiple Choice

Which of the following statements is true?

• A) Systematic, or market, risk can be reduced through diversification.
• B) Both systematic and unsystematic risk can be reduced through diversification.
• C) Unsystematic, or company, risk can be reduced through diversification.
• D) Neither systematic nor unsystematic risk can be reduced through diversification.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded at those prices, typically downward sloping.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a specified period.

Shifts

Refers to changes in the position of demand or supply curves in economic models, often due to changes in external factors such as technology, preferences, or policy.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of that good or service that consumers are willing and able to purchase at various prices.