Finance 534 week 10 quiz 9
Inflation, recession, and high interest rates are economic events that are best characterized as being
systematic risk factors that can be diversified away.
company-specific risk factors that can be diversified away.
among the factors that are responsible for market risk.
risks that are beyond the control of investors and thus should not be considered by security analysts or portfolio managers.
irrelevant except to governmental authorities like the Federal Reserve.
Which of the following statements is CORRECT? (Assume that the risk-free rate is a constant.)