________ risk ________ be eliminated through greater diversification and is due to firm-specific or industry-wide factors such as strikes or resource price changes.
A) Systematic; can
B) Systematic; cannot
C) Unsystematic; can
D) Unsystematic; cannot
E) None of the above

Question

Quizplus · Accepted Answer

Unsystematic risk, also referred to as diversifiable risk in the text, includes events such as employee strikes, loss of major customers and technological obsolescence. It is important to note that these events only affect one or a few firms and thus can be eliminated through diversification.

________ Risk ________ Be Eliminated Through Greater Diversification and Is

Risk Be Eliminated Through Greater Diversification and Is