Which one of the following is correct about individual stocks? Individual stocks are exposed to the same amount of market risk. Individual stocks are exposed to differing amounts of market risk. O Individual stocks are not exposed to market risk; only the general economy is subject to market risk. O Individual stocks are exposed to differing amounts of market risk but the same amount of specific risk.
Which one of the following is correct about individual stocks? Individual stocks are exposed to the same amount of market risk. Individual stocks are exposed to differing amounts of market risk. O Individual stocks are not exposed to market risk; only the general economy is subject to market risk. O Individual stocks are exposed to differing amounts of market risk but the same amount of specific risk.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Which one of the following is correct about individual stocks?
O Individual stocks are exposed to the same amount of market risk.
Individual stocks are exposed to differing amounts of market risk.
Individual stocks are not exposed to market risk; only the general economy is subject to market risk.
Individual stocks are exposed to differing amounts of market risk but the same amount of specific risk.
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Systematic risk is also known as non-diversifiable risk, and it exist for entire market. It arises due to macro-economic factors like Inflation rate, interest rate and growth rate.
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