Investment Risk Cannot Be Entirely Eliminated Through the Diversification of an Investment

question 5

Multiple Choice

Investment risk cannot be entirely eliminated through the diversification of an investment portfolio.This risk remaining after diversification is called:

• A)Diversifiable risk.
• B)Standard deviation.
• C)Systematic risk.
• D)Total risk.

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Definitions:

Collective Conscience

The shared beliefs, morals, and attitudes that operate as a unifying force within society.

Latent Function

Unintended and often unrecognized outcomes that contribute to the adjustment or adaptation of a system.

Marxian

Related to the theories and writings of Karl Marx, especially with respect to his analysis of society, politics, and economics.

Capitalist Economy

An economic system where trade, industries, and the means of production are largely or entirely owned and operated by private individuals or businesses aiming for profit.