Systematic risk d none of the above ans c 18 the

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Unformatted text preview: e risk c. Firm specific risk d. All of the above ANS: D 15. Market risk is also called: I) systematic risk, II) undiversifiable risk, III) firm specific risk. a. I only b. II only c. III only d. I and II only ANS: D 16. Which of the following statements is/are correct? I. Unsystematic risk can be eliminated through diversification. 4 5 II. Unsystematic risk is the relevant portion of an asset’s risk attributable to market factors that affect all firms, like inflation, political events, etc. a. I only b. II only c. Both I and II d. Neither I nor II ANS: A D ­2: Measure of Systematic R...
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This note was uploaded on 07/31/2013 for the course FIN 504 taught by Professor Harper,j during the Summer '08 term at Texas A&M University–Commerce.

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