Market risk
A)can be eliminated through diversification.
B)represents the risk generated through chance events affecting a single company.
C)cannot be eliminated through diversification.
D)is another name for idiosyncratic risk.

Question

Quizplus · Accepted Answer

Market risk, also known as systematic risk, refers to the risk that comes with market movements and cannot be diversified away. It affects the overall market, and all stocks in the market are subject to it. While diversification can help reduce company-specific or idiosyncratic risks, it cannot eliminate market risk.

Market Risk