Unsystematic Risk Can Be Defined As

question 8

Multiple Choice

Unsystematic risk can be defined as:

• A) the total risk to the firm.
• B) the risk of the individual security.
• C) the added risk that a firm's shares bring to a diversified portfolio.
• D) the risk of the market in general.

---

Definitions:

Shares

A form of financial ownership in a company, giving the holder a portion of the profits and voting rights.

CEO

Chief Executive Officer, the highest-ranking person in a company or organization, responsible for making major corporate decisions.

CFO

The Chief Financial Officer is a high-ranking executive responsible for managing the financial actions of a company, including financial planning and record-keeping.

Companies

Organizations engaged in commercial, industrial, or professional activities.