Diversifiable Risk Is That Part of Total Investment Risk That

question 45

True/False

Diversifiable risk is that part of total investment risk that can be eliminated through spreading the mix of assets in a portfolio.

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Definitions:

Local Financial Institution

A banking or financial service organization that operates and provides services within a specific local or regional area.

Income

Income earned periodically through work or investments.

Provisional Income

Income used to determine how much of a person's Social Security benefits are taxable, including adjusted gross income, nontaxable interest, and half of the Social Security benefits.

Adjusted Gross Income

The measure of income calculated from your gross income and includes specific allowed deductions, used to determine tax liability.