Risks that are peculiar to a single firm:
A) are called market risks
B) cannot be diversified away
C) are called specific risks
D) tend to cause stocks to move together

Question

Quizplus · Accepted Answer

Risks that are peculiar to a single firm are called specific risks. These risks are unique to a particular company and cannot be diversified away. They can include factors such as management changes, economic downturns, lawsuits, or unexpected events that affect the company's operations. Specific risks can cause fluctuations in the company's stock price and can have a significant impact on investors who are solely invested in that particular company.

Risks That Are Peculiar to a Single Firm