The risk that can be diversified is also called:
A) Systematic risk.
B) Unsystematic risk.
C) Portfolio risk.
D) Foreseeable risk.
E) Unforeseeable risk.

Question

Quizplus · Accepted Answer

Unsystematic risk, also known as specific risk, diversifiable risk, or idiosyncratic risk, refers to the risk associated with a specific company or industry. This type of risk can be reduced or eliminated through diversification, which involves spreading investments across various sectors or asset classes.

The Risk That Can Be Diversified Is Also Called