Another name for diversiﬁable risk is
A) systemic risk.
B) inﬂation risk.
C) idiosyncratic risk.
D) cyclical risk.

Question

Quizplus · Accepted Answer

Diversifiable risk is also known as idiosyncratic risk, which is the risk that is specific to a particular company or industry that can be mitigated through diversification of investments. Systemic risk, on the other hand, refers to the risk that is inherent in the entire market or economy and cannot be diversified away. Inflation risk and cyclical risk are other types of risks that are not necessarily related to diversifiable risk.

Another Name for Diversiﬁable Risk Is