Diversifiable Risk Refers to Risk

question 117

Multiple Choice

Diversifiable risk refers to risk

• A)faced by a portfolio in general.
• B)that can be reduced with appropriate fiscal and monetary policy.
• C)posed by business cycle fluctuations.
• D)specific to a particular investment.

---

Definitions:

Uniqueness

Refers to the quality of being the only one of its kind; distinctiveness.

Consumer's Budget

is the total amount of income available to an individual or household to spend on goods and services or to save, after taxes.

Elastic Demand

A situation where the quantity demanded of a product changes significantly in response to changes in the product's price.

Inelastic Demand

Refers to a situation where the quantity demanded of a good or service does not significantly change when its price changes.