Firm-specific risk is also referred to as
A) systematic riskor diversifiable risk.
B) systematic riskor market risk.
C) diversifiable risk or market risk.
D) diversifiable risk or unique risk.

Question

Quizplus · Accepted Answer

Firm-specific risk refers to the risk that affects a particular company, such as management decisions or product launches, and can be mitigated through diversification. It is also known as diversifiable risk or unique risk, because it does not impact the entire market and can be unique to a single firm.

Firm-Specific Risk Is Also Referred to as