Questions
FA25-BL-BUS-F370-8099 Prep 12.1
Single choice
Systematic risk...
Options
A.is market risk that can be eliminated, or at least minimized, by creating a well diversified portfolio.
B.is company-specific risk measured by that cannot be eliminated, or at least minimized, by diversification..
C.is caused by company-specific factors such as exposure to competitive pressures, supply chain issues, and industry technology trends. These factors are distinguished for each firm using beta.
D.is market risk that cannot be diversified away and is an integral component of the capital asset pricing model (CAPM).
View Explanation
Verified Answer
Please login to view
Step-by-Step Analysis
Question context is about systematic risk in finance. We will evaluate each answer option on its accuracy and alignment with the standard definition of systematic risk.
Option 1: 'is market risk that can be eliminated, or at least minimized, by creating a well diversified portfolio.' This statement is incorrect because systematic risk, by definition, cannot be eliminated through diversification. ......Login to view full explanationLog in for full answers
We've collected over 50,000 authentic exam questions and detailed explanations from around the globe. Log in now and get instant access to the answers!
Similar Questions
More Practical Tools for Students Powered by AI Study Helper
Making Your Study Simpler
Join us and instantly unlock extensive past papers & exclusive solutions to get a head start on your studies!