________ risk represents the portion of an asset's risk that can be eliminated by combining assets with less than perfect positive correlation.
A) Diversifiable
B) Market
C) Systematic
D) Economic

Question

Quizplus · Accepted Answer

Diversifiable risk, also known as unsystematic risk, can be eliminated by combining assets with less than perfect positive correlation through diversification. This type of risk can be reduced by spreading investments across different assets, sectors, and geographic regions. Market risk, systematic risk, and economic risk cannot be eliminated through diversification as they are not specific to individual assets but affect the entire market or economy.

________ Risk Represents the Portion of an Asset's Risk That