A risk that affects only individuals or small groups and not the entire economy is called a
A)diversifiable risk.
B)pure risk.
C)speculative risk.
D)nondiversifiable risk.

Question

Quizplus · Accepted Answer

Diversifiable risk, also known as unsystematic risk or specific risk, only affects a specific company or industry and can be mitigated through diversification. Pure risk refers to risks that can only result in a loss or no change at all. Speculative risk involves the possibility of gaining or losing, while nondiversifiable risk is systematic risk that affects the entire market.

A Risk That Affects Only Individuals or Small Groups and Not