Practice mode Finance

Diversification can eliminate unsystematic risk. What is the market risk that is left over described as?

Correct answer A. Remaining risk

Explanation

Market or systematic risk is the risk that remains after a portfolio is fully diversified, because it stems from economy-wide factors affecting all securities.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.