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Andre45 [30]
3 years ago
8

Investment risk may broadly be categorized as either unsystematic or systematic risk; both types of risk together constitute tot

al, or absolute, risk. Total risk is measured by
Business
1 answer:
olganol [36]3 years ago
3 0

Answer:

standard deviation

Explanation:

Systemic risk is risk inherent in a market and cannot be diversified.

systemic risk is measured by beta

unsystemic risk is risk specific to a business and it can be eliminated by diversifying portfolio

the sum of systemic and unsystemic risk gives total risk and it is measured by standard deviation

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Jim buys a new car in February 2019 for $35,000. The car had been produced in the U.S. in January 2019. However, because of some
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$35,000

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$35,000 will be included in nominal GDP of 2019 because the original selling is $35,000 and if other selling prices are included, that will create the double accounting problem.

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Choose the best defense of the following statement: “A great communicator will practice speaking often.” a. Lots of practice wil
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Which of the following characteristics differentiates a firm in an oligopolistic market from a firm in a perfectly competitive m
Oliga [24]

Answer:

A) A firm in an oligopolistic market has to consider its own impact on price when making production decisions

Explanation:

A perfectly competitive market is a market with many firms selling identical product. There are free entry and free exist and the decision of a firm does not affect the price in the market as all firms are price takers. Therefore, each firm is independent under perfectly competitive market and production decisions of a firm in a perfectly competitive market does not affect the price in the market nor will it cause any reaction from other firms.

However, Oligopolistic market is a market where there are few firms which are 3 or more firms but not more than 20 firms selling identical or differentiated product.. Firms in oligopolistic market are interdependent which implies that the decision of one firm can affect price and this can cause reaction from other firms and then lead to a price war. A price war occurs when each firm continually reduces its own price in order to increase its market share which causes other firms to react reducing their own prices and this will make none of the firms to gain in the end. In order to avoid the price war, each firm in an oligopolistic market has to consider its own impact on price when making production decisions.

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A U.S. Treasury bill will have a lower risk premium since U.S. government-issued securities are usually considered to be default free.

In comparison to a company bond with a Baa rating, a company bond with a score will have a higher risk premium on its interest. While compared to corporate bonds with a Baa rating, the C grade bond has a higher default risk, which reduces demand and increases interest rates.

The equity risk premium enables to set portfolio go back expectancies and decide asset allocation. A better top rate implies that you might make investments a greater percentage of your portfolio into shares. Capital asset pricing also relates a inventories anticipated go back to the equity premium.

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