Which of the following is defined as the portion of total risk that is attributable to firm or industry factors and can be reduced through diversification?
A) firm specific risk
B) market risk
C) modern portfolio risk
D) total risk

Question

Quizplus · Accepted Answer

Firm specific risk, also known as unsystematic risk, is the portion of total risk that is unique to a particular company or industry. It can be reduced or eliminated through diversification, unlike market risk which affects all companies.

Which of the Following Is Defined as the Portion of Total