A systemic risk is a risk that
A) can be eliminated through diversification.
B) can be the cause of the collapse of an entire system.
C) can be insured privately.
D) can be easily contained so that it does not spread.
Answer: B
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A car company is marketing a new car model that is larger and more luxurious than any of the models currently in the product line. It is also significantly more expensive. Explain the strategy this car company is using with its product line
What will be an ideal response?
In the price/earnings approach to stock valuation,
A) historical stock prices are utilized. B) forecasted EPS are typically used. C) the P/E ratio is computed by multiplying the stock price by the earnings per share. D) the market P/E ratio, adjusted by beta, is used to value individual stocks.