7-1Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducationChapter07TestBank-StaticStudent:___________________________________________________________________________MultipleChoiceQuestions1.MarketriskisalsoreferredtoasA.systematicriskordiversifiablerisk.B.systematicriskornondiversifiablerisk.C.uniqueriskornondiversifiablerisk.D.uniqueriskordiversifiablerisk.2.SystematicriskisalsoreferredtoasA.marketriskornondiversifiablerisk.B.marketriskordiversifiablerisk.C.uniqueriskornondiversifiablerisk.D.uniqueriskordiversifiablerisk.E.Noneoftheoptionsarecorrect.3.NondiversifiableriskisalsoreferredtoasA.systematicriskoruniquerisk.B.systematicriskormarketrisk.C.uniqueriskormarketrisk.D.uniqueriskorfirm-specificrisk.4.DiversifiableriskisalsoreferredtoasA.systematicriskoruniquerisk.B.systematicriskormarketrisk.C.uniqueriskormarketrisk.D.uniqueriskorfirm-specificrisk.5.UniqueriskisalsoreferredtoasA.systematicriskordiversifiablerisk.B.systematicriskormarketrisk.C.diversifiableriskormarketrisk.D.diversifiableriskorfirm-specificrisk.E.Noneoftheoptionsarecorrect.6.Firm-specificriskisalsoreferredtoasA.systematicriskordiversifiablerisk.B.systematicriskormarketrisk.C.diversifiableriskormarketrisk.D.diversifiableriskoruniquerisk.7.NonsystematicriskisalsoreferredtoasA.marketriskordiversifiablerisk.B.firm-specificriskormarketrisk.C.diversifiableriskormarketrisk.7-2Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducationD.diversifiableriskoruniquerisk.8.TheriskthatcanbediversifiedawayisA.firm-specificrisk.B.beta.C.systematicrisk.D.marketrisk.9.TheriskthatcannotbediversifiedawayisA.firm-specificrisk.B.unique.C.nonsystematicrisk.D.marketrisk.10.ThevarianceofaportfolioofriskysecuritiesA.isaweightedsumofthesecurities'variances.B.isthesumofthesecurities'variances.C.istheweightedsumofthesecurities'variancesandcovariances.D.isthesumofthesecurit...
