Systematic risk is diversifiable, so it is an investment's relevant risk. Unsystematic risk is nondiversifiable risk and therefore not relevant.
Answer the following statement true (T) or false (F)
False
Market risk is systematic risk, and is nondiversifiable, whereas firm-specific risk is unsystematic risk, and is diversifiable. The systematic risk is the relevant risk of an investment. See 8-6: Different Types of Risk
You might also like to view...
In operant conditioning, ______ provides a reward in return for a constructive action on the part of the subject.
A. onboarding B. positive reinforcement C. employee development D. remediation
From the Adjustments columns of the work sheet, only the debit amount for the Income Summary account is extended to the Adjusted Trial Balance columns
Indicate whether the statement is true or false
"Ella, I have enjoyed mentoring you. Now, let's summarize what we have discussed about change. First, change is happening more rapidly and dramatically than at any other time in history. Second, if you don't anticipate change and adapt to it, you and your firm ________," explained retired CEO Randall Pearson.
A. will nonetheless thrive due to decreasing globalization B. will not thrive in a competitive business world C. will not thrive unless you eliminate flexible work arrangements like virtual teamwork D. will not thrive unless employee skills are held static, meaning they are unchanged E. will nonetheless thrive if you increase costs
Hunkins Corporation has provided the following data concerning last month's operations. Purchases of raw materials$33,000Indirect materials included in manufacturing overhead$4,000Direct labor cost$58,000Manufacturing overhead applied to Work in Process$91,000 BeginningEndingRaw materials inventory$14,000$20,000Work in process inventory$57,000$70,000 How much is the total manufacturing cost for the month on the Schedule of Cost of Goods Manufactured?
A. $176,000 B. $159,000 C. $172,000 D. $229,000