Diversifiable risk is defined as:
A) risk with two possible outcomes
B) risk with three possible outcomes
C) an individual's perception of risk
D) none of the above

Question

Quizplus · Accepted Answer

Diversifiable risk refers to risks that are specific to a particular company or sector and can be reduced through diversification, such as by investing in multiple companies across different industries. It has nothing to do with the number of possible outcomes or an individual's perception of risk.

Diversifiable Risk Is Defined As