The inclusion of thirty highly diverse securities in a portfolio eliminates the bulk of the ___ risk.
A) Market.
B) Unique.
C) Unexpected.
D) Expected.
E) Inflation.

Question

Quizplus · Accepted Answer

The inclusion of a diverse set of securities in a portfolio primarily reduces unique risk, also known as unsystematic risk, which is the risk associated with individual assets.

The Inclusion of Thirty Highly Diverse Securities in a Portfolio