The Terms ________ and ________ Mean the Same Thing

question 94

Multiple Choice

The terms ________ and ________ mean the same thing.

• A)nondiversifiable risk; unsystematic risk
• B)diversifiable risk; systematic risk
• C)diversifiable risk; unsystematic risk
• D)total risk; unique risk

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Definitions:

Probability Density Function

A function that describes the likelihood of a continuous random variable falling within a particular range of values.

Total Area

In statistical terms, often refers to the entirety of the area under a probability distribution curve, which equals 1 or 100%.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to make inferences about a population.

Nonnormal Population

A population distribution that does not fit the normal (bell-shaped) distribution pattern, often having skewness or kurtosis.