Non-diversifiable risk is relevant to a well-diversified investor.

Name: Non-diversifiable risk is relevant to a well-diversified investor.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Non-diversifiable risk, also known as systematic or market risk, affects all investments and cannot be eliminated through diversification. It is relevant to all investors, including those with well-diversified portfolios, because it stems from factors like economic, political, or global events that impact the entire market.

Non-Diversifiable Risk Is Relevant to a Well-Diversified Investor