Q396
A risk associated with project and way considered by well diversified stockholder is classified as
A.
expected risk
B.
beta risk
AnswerC.
industry risk
D.
returning risk
Answer: Option B
Solution
Answer: Option B
Solution:
A risk associated with project and way considered by well diversified stockholder is classified as beta risk. Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta risk is the probability that a false null hypothesis will be accepted by a statistical test.