Total security risk is the sum of a security's nondiversifiable and diversifiable risk.

Name: Total security risk is the sum of a security's nondiversifiable and diversifiable risk.
Brand: Quizplus
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Quizplus · Accepted Answer

Total security risk includes both nondiversifiable risk, also known as systematic risk, which affects the entire market and cannot be diversified away, and diversifiable risk, also known as unsystematic risk, which can be reduced through diversification. Therefore, the total security risk is the sum of both types of risk.

Total Security Risk Is the Sum of a Security's Nondiversifiable