Systematic risk is: A. totally eliminated when a portfolio is fully diversified.
ID: 2733257 • Letter: S
Question
Systematic risk is:
A. totally eliminated when a portfolio is fully diversified.
B. defined as the total risk associated with surprise events.
C. risk that affects a limited number of securities.
D. measured by beta.
E. measured by standard deviation.
15. Portfolio diversification eliminates which one of the following?
A. Total investment risk
B. Portfolio risk premium
C. Market risk
D. non-systematic risk
E. Reward for bearing risk
Which one of the following is the best example of systematic risk of AAPLE?
A. Innovative product of iphone7
B. Decrease in sales in China market
C. Increase in Research and Development expenses
D. Decrease in gross domestic product of USA
E. Decrease in management bonuses for AAPLE’s tope executives
Explanation / Answer
Systematic risk is mesured by Beta.
The Answer is " D " that is measured by beta.
15. Portfolio diversification eliminates Nonsystematic risk
The Answer is " D " that is non-systematic risk
Which one of the following is the best example of systematic risk of AAPLE is Decrease in gross domestic product of USA
The Answer is " D " that is Decrease in gross domestic product of USA
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