Which of the following risks is most important to a well-diversified investor in common stocks?
A)market risk
B)unique risk
C)total risk
D)diversifiable risk

Name: Which of the following risks is most important to a well-diversified investor in common stocks? A)market risk B)unique risk C)total risk D)diversifiable risk
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Question

Quizplus · Accepted Answer

Market risk is most important to a well-diversified investor because diversification can eliminate unique (or diversifiable) risk, but not market risk, which affects all stocks.

Which of the Following Risks Is Most Important to a Well-Diversified