The Risk That Can Be Diversified Away in a Portfolio

question 2

Multiple Choice

The risk that can be diversified away in a portfolio is referred to as ___________. I) diversifiable risk
II) unique risk
III) systematic risk
IV) firm-specific risk

• A)I, III, and IV
• B)II, III, and IV
• C)III and IV
• D)I, II, and IV

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Definitions:

Judicial Activism

The judicial philosophy that posits judges should freely interpret the existing laws and the Constitution to address contemporary conditions and uphold personal or political values.

Conservative Tone

An approach or style of expression that emphasizes traditional values, caution, and resistance to change.

Gerald Ford

The 38th President of the United States, known for his controversial pardon of Richard Nixon and efforts to heal the country post-Watergate.

American Economy

The economic system of the United States, characterized by a mixture of private and public enterprises, and noted for its innovation, diversity, and significant GDP.