Unsystematic risk is the relevant portion of an asset's risk attributable to market factors that affect all firms.

Name: Unsystematic risk is the relevant portion of an asset's risk attributable to market factors that affect all firms.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Unsystematic risk, also known as company-specific risk, is the portion of an asset's risk that is specific to that company and not related to overall market factors affecting all firms. Therefore, the statement in the question is false.

Unsystematic Risk Is the Relevant Portion of an Asset's Risk