Examlex
You notice two men having an argument outside a club.One man has a narrow face and the other has broader features.Which of the following is most likely to occur?
Systematic Risk
The danger that affects the whole market or a specific segment of the market, commonly referred to as market risk.
Unsystematic Risk
The risk specific to an individual asset or company, such as management decisions or product recalls, which can be mitigated through diversification.
Diversification
An investment strategy that involves spreading investments among various financial instruments, industries, or other categories to minimize risk.
Diversifiable Risk
The risk that can be reduced or eliminated from a portfolio through diversification, as opposed to non-diversifiable risk.
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