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 diversifiable risk, can be reduced or eliminated by diversifying investments across different assets or securities. This type of risk is specific to a particular company or industry and can be mitigated through portfolio diversification. Systematic risk, on the other hand, affects the entire market or economy and is beyond an investor's control.

The Risk That Can Be Diversiﬁed Is Also Called