Which of the Following Is True of Factor Risk

question 13

Multiple Choice

Which of the following is true of factor risk?

• A)It is generally diversifiable.
• B)It is same as the unsystematic risk of a firm.
• C)It is different for different firms in the same industry.
• D)It can be hedged with financial derivatives.

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Definitions:

Simple Diffusion

The movement of molecules from an area of higher concentration to an area of lower concentration without the need for energy or a carrier.

Digestive System

The series of organs and glands responsible for the breakdown and absorption of food to extract necessary nutrients.

Respiratory System

The network of organs and tissues that help you breathe, including the lungs, trachea, and nasal passages.

Lymph

Fluid in the lymph vascular system.