Non diversifiable risk arises because

Related MCQs

• Non diversifiable risk affects I. the opportunity cost of capital II. should enter into the risk premium
• Diversifiable risk can be eliminated by
• Adverse selection arises because
• When people behave in ways that involve increased risk because they have insurance, this is known as
• When the average buyer of an insurance policy is likely to have higher risk than others in his class, this is known as
• The risk premium for a capital investment by comparing the expected return on that investment with the expected return on the entire stock market is measured by
• The Coase theorem has problems because
• Externalities can be positive because
• In a public goods context, it is difficult to measure impact on real income because
• Bargaining costs are generally high in cases involving environmental externalities because