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yordanka licea
on Nov 03, 2024

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The risk that can be diversified away in a portfolio is referred to as ___________. I) diversifiable riskII) unique riskIII) systematic riskIV) firm-specific risk

A) I, III, and IV
B) II, III, and IV
C) III and IV
D) I, II, and IV
E) I, II, III, and IV

Diversifiable Risk

A type of investment risk that can be reduced or eliminated through portfolio diversification, as opposed to systemic risk which affects all investments.

Systematic Risk

The inherent risk that affects the entire market or a certain segment of the market, often influenced by factors like political, economic, and interest rate changes that cannot be mitigated through diversification.

Firm-specific Risk

The type of risk that affects a particular company or industry, as opposed to systemic risk, which affects the entire market.

  • Gain insight into the principles of systematic and unsystematic risk and their impact on portfolio administration.
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Victoire AndreanNov 07, 2024
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