You invest in Transphorm and it goes up 20% in 6 months when the NASDAQ in...
You invest in Transphorm and it goes up 20% in 6 months when the NASDAQ in general does not, according to the risk/return tradeoff this tends to imply.
a) An increase in systematic risk
b) A decrease in systematic risk
c) An increase in non-systematic risk
d) A decrease in non-systematic risk
Homework Answers
A increase in non-systematic risk,
As stock moved contrary to the Index, so non-systematic risk increases.
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