Firm-specific risk is also called ________ and ________.
A) systematic risk; diversifiable risk
B) systematic risk; nondiversifiable risk
C) unique risk; nondiversifiable risk
D) unique risk; diversifiable risk

Question

Quizplus · Accepted Answer

Firm-specific risk is also known as unique risk, which can be diversified away by holding a well-diversified portfolio of assets. It is also considered as diversifiable risk as it can be eliminated by diversifying investments across different companies or industries.

Firm-Specific Risk Is Also Called ________ and ________

Firm-Specific Risk Is Also Called and