Systematic Risk Can Be Eliminated Through Portfolio Diversification

question 44

True/False

Systematic risk can be eliminated through portfolio diversification.

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Definitions:

Defined Contribution Plan

A retirement plan in which the employer, employee, or both make contributions on a regular basis, and the final benefits depend on the investment's performance.

SUTA Taxes

SUTA Taxes refer to State Unemployment Tax Act taxes, which employers pay to provide unemployment benefits to laid-off workers.

FUTA Taxes

Federal Unemployment Tax Act taxes, which are payroll taxes paid by employers to fund unemployment benefits.

Payroll Taxes

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.