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35.Which of the following statements is true? Select one:a. Higher quarterly loss than expected for Air...

35.Which of the following statements is true?

Select one:a. Higher quarterly loss than expected for Air Canada is considered an example of systematic risk.b. An increasing uncertainty about the GDP growth rate is an example of systematic risk.c. Non-diversifiable risk is measured by standard deviation.d. The risk premium increases as the unique risk increases.e. None of the above.

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Answer #1

Higher quarterly loss than expected for Air Canada is considered an example of un-systematic risk.

An increasing uncertainty about the GDP growth rate is an example of systematic risk.

Total risk is measured by standard deviation.

The risk premium increases as the unique risk decreases. Risk premium is the difference between market risk and unique risk and it increases as unique risk decreases.

So the correct option is .b. An increasing uncertainty about the GDP growth rate is an example of systematic risk.

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