University of Ottawa (U OF O ) • ADM 3352
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ADM 3352 Quiz 1_Answered, 2025. 
Complete Answer Key Below. 
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question. 
1)	Systemic risk is 
A)	credit risk. 
B)	an insurance contract against the default of one or more borrowers. 
C)	firm-specific risk. 
D)	default risk. 
E)	the potential breakdown of the financial system when problems in one market spill over and disrupt others. 
 
2)	The value of a derivative security 
A)	depends on the value of the...