Which of the following is an example of unsystematic risk quizle

Which of the following is an example of unsystematic risk quizlet. Study with Quizlet and memorize flashcards containing terms like which of the following measures the amount is systematic risk present in a particular risky asset relative to the systematic risk present in an average risky asset? - beta - reward to risk ratio - risk ratio - standard deviation - price earnings ratio, Standard deviation measures which type of risk? - total - nondiversifiable Study with Quizlet and memorize flashcards containing terms like What is the definition of expected return?, Which of the following are examples of a portfolio?, When an investor is diversified only ___ risk matters and more. Higher quarterly loss than expected for Procter and Gamble Lower consumer spending than expected Latest unemployment figures increased, as expected Study with Quizlet and memorize flashcards containing terms like The risk premium of a security is determined by its __ risk and does not depend on its __ risk, When investing for a long term, investors care about the volatility of ___ returns and not the volatility of __ returns, Many former employees at AlphaEnergy, an enerfy trading and supply company, had a large part of their portfolio Find step-by-step solutions and your answer to the following textbook question: Which of the following is an example of unsystematic risk? Group of answer choices A. Jun 20, 2023 · The following are some examples of unsystematic risks that companies might face. A. ) I. , Unsystematic Risk: is measured by beta. II. The minimum rate of return the firm requires on this project is referred to as the:, The expected return on Study with Quizlet and memorize flashcards containing terms like The standard deviation of a portfolio: Multiple Choice is a weighted average of the standard deviations of the individual securities held in the portfolio. This statement is incorrect. . 5 percent rate?, Stock A comprises 28 percent of Susan's portfolio. Which of the following is an example of diversifiable risk?, The beta of a stock is the slope of: and more. Which one of the following terms applies to the 28 percent?, Which one of the following describes systematic risk? and more. 5 percent on her investment in that stock. and more. can be effectively eliminated by portfolio diversification is measured by standard Study with Quizlet and memorize flashcards containing terms like Risk that affects a large number of assets, each to a greater or lesser degree, is called _____ risk. must be equal to or greater than the expected return of the worst performing security in the portfolio. total, The principle of diversification tells us that: A. can never exceed the expected return of the best performing security in the portfolio. Which one of the following best describes the 16. Unsystematic risk, also known as specific risk, refers to the risks that are unique to a particular company or industry. idiosyncratic B. A global economic crisis impacts nearly all companies and industries, regardless of their specific characteristics. is independent of the unsystematic risks of Business; Finance; Finance questions and answers; Which one of the following is an example of unsystematic risk? the inflation rate increases unexpectedly the federal government lowers income taxes an oil tanker runs aground and spills its cargo interest rates decline by one-half of one percent Non-diversifiable risk refers to systematic risk. can never be less than the standard deviation of the most risky security in the portfolio. Which one of the following terms most applies to Suzie's investments?, Treynor Industries is investing in a new project. Widespread high inflation B. Inflation in all industrialized country economies D. Study with Quizlet and memorize flashcards containing terms like You are considering buying some stock in Colony Transport. Coffee roasting company experiencing an increse in coffee bean prices from suppliers. eliminate systematic risk. Economy in the midst of a recession C. 5 for a security indicates a) the secruity has below-average systematic risk b) the security has no unsystematic risk c) the security has average systematic risk d) the security has above-average systematic risk Study with Quizlet and memorize flashcards containing terms like Suzie owns five different bonds valued at $36,000 and twelve different stocks valued at $82,500 total. must be equal to or greater than the lowest standard deviation of any single Study with Quizlet and memorize flashcards containing terms like The primary purpose of portfolio diversification is to: eliminate asset-specific risk. III. unsystematic B. ) It is more tightly linked to the market as a whole than systematic risk. Study with Quizlet and memorize flashcards containing terms like Standard Deviation measures which type of risk?, The expected return on a portfolio: I. While some of these risks may be fairly common, they are not evenly distributed across the entire market. diversifiable C. A beta value of 0. Which of the following is an example of systematic or market risk?, You are considering investing in Disney. is compensated for by the risk premium. total, A news flash just appeared that caused about a dozen stocks to suddenly drop in value by about 20 percent. asset-specific E. Study with Quizlet and memorize flashcards containing terms like Which one of the following is a risk that applies to most securities? A. Which of the following would be considered an example of diversifiable (unsystematic) risk? (Select the best choice below. concentrating an investment in two or three large stocks will eliminate all of your risk. Find step-by-step solutions and your answer to the following textbook question: Which one of the following is an example of unsystematic risk? - the inflation rate increases unexpectedly - the federal government lowers income taxes - an oil tanker runs aground and spills its cargo - interest rates decline by one-half of one percent - the GDP rises by 2% more than anticipated. systematic D. eliminate all risks increase returns and risks. Unsystematic risk is specific to a particular company or industry, while systematic risk is the risk that affects all companies and is linked to the market as a whole. Global Economic Crises: This is an example of systematic risk because it affects the entire market. Unsystematic risk is specific to a company or industry and can be reduced through diversification. Key Takeaways. ) Jan 18, 2024 · An example of unsystematic risk is when consumer spending on entertainment decreases nationally (option E). portfolio B Study with Quizlet and memorize flashcards containing terms like Mary owns a risky stock and anticipates earning 16. B 11. This type of risk can be reduced through diversification, meaning that if an investor holds a variety of investments, the ne Study with Quizlet and memorize flashcards containing terms like Which of the following is an example of systematic risk?, Which of the following is an example of unsystematic risk?, What do you call the portion of your total return on a stock investment that is caused by an increase in the value of the stock. c. What type of risk does this news flash represent? A. b. nlfqfn lirgfc zdqkhbm ssdbz wili sjygvj wmjybsz lmmifdam pecwfgk eyvkfw