Because systematic risk measures how much an asset's return co-moves with the market, it ________
A) can be diversified away with the appropriate hedging
B) cannot be diversified away
C) is partially driven by idiosyncratic risk
D) can be completely eliminated using international securities
Answer: B
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Gordron Inc manufactures and markets medical equipment. To ensure that its salespeople are knowledgeable enough to answer all product queries, the company hires only those individuals who have a good understanding of both the medical profession and
the mechanics of the equipment used. Which of the following is the most accurate classification of Gordron's salesforce? A) technicians B) demand creators C) deliverers D) order takers E) missionaries
The base level of sales must be held constant to compare the total leverage associated with different levels of fixed costs
Indicate whether the statement is true or false