Examlex
Which of the following is TRUE?
Diversifiable Risk
The portion of an investment's risk that can be reduced or eliminated through the practice of diversifying one's investment portfolio across various assets.
Systematic Risk
The inherent risk affecting the overall market or a particular sector, which cannot be eliminated through diversification.
Market Risk
The risk of losses in investments due to factors that affect the entire market or asset class, such as economic changes or political events.
Firm-specific Risk
The type of risk that affects a particular company or industry, also known as unsystematic risk.
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