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?? a Home-Lookin O Quiz: Exam > Chegg Study ( C Assume That ? C Compute The S ( No Change Dec Q Finance exam # ? ? fù ?https://nmsu.instructure.com/courses/1156550/quizzes/1883848/take Find on page holding which Of The F + m???? NO results ? ? Options ? What type of risk can be eliminated in a well diversified portfolio? STATE O unsystematic O market O undiversifiable ? systematic DQuestion 7 4 pts What type of risk can be eliminated in a well diversified portfolio? O systematic O market O undiversifiable O company specific 10:04 PM O Type here to search 6/11/2018Explanation / Answer
First Question - Answer is Unsystematic Risk
Unsystematic risk, which is also known as "specific risk" or "diversifiable risk" is volatility associated with the company or industry investor invests in. This type of risk can be reduced through diversification. Example - risk of technology obsoletion that Apple faces.
Other options - Market, Systematic Risk or Undiversifiable Risk are terms to same definition, these risks cannot be diversified. Example - risk of a political change
Second Question - Answer is Company Specific Risk
Company specific risk is basically Unsystematic risk, which is specifically diversifiable, as explained above.
Other options - Market, Systematic Risk or Undiversifiable Risk are terms to same definition, these risks cannot be diversified. Example - risk of a political change
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