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:

Wye-Connected

A method of connecting three-phase motors or transformers where the ends are connected to form a "Y" shape, facilitating the use of both line and phase voltages.

Phase Current

The current that flows through any one phase of a multi-phase system, like in three-phase electrical systems.

Resistive Load

An electrical load that consumes power in the form of heat, and its resistance essentially remains constant throughout its operation.

Line Voltage

The voltage measured between any two phases in a multi-phase electrical system.