What type of risk can be eliminated in a well diversified portfolio? unsystematic market undiversifiable systematic

Question

Question

What type of risk can be eliminated in a well diversified portfolio?

unsystematic

market

undiversifiable

systematic

Answer 1

Answer #1

The unsystematic risk (also called firm-specific risk) can be eliminated in a well diversified portfolio.

1. market

2. undiversifiable

3. systematic

These risk are one and the same and cannot be eliminted by diversification.

Answer 2

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