________ is risk that cannot be diversified away.
A)Unsystematic risk
B)Systematic risk
C)Firm-specific risk
D)Diversifiable risk

Question

Quizplus · Accepted Answer

Systematic risk cannot be diversified away because it impacts the entire market or a specific sector, and is not related to the performance of a specific individual investment or company. Examples include macroeconomic factors such as interest rates, inflation, and political instability. Unsystematic risk, firm-specific risk, and diversifiable risk can be reduced through diversification across different investments or companies.

________ Is Risk That Cannot Be Diversified Away