The Type of the Risk That Can Be Eliminated by Diversification

question 15

Multiple Choice

The type of the risk that can be eliminated by diversification is called:

• A) Market risk
• B) Unique risk
• C) Interest rate risk
• D) Default risk

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Definitions:

GDP Deflator

A measure of the price level of all newly produced, domestic, final goods and services in an economy, used to adjust GDP for inflation.

GDP Deflator

A means of determining the price rates for all new, domestically crafted, final goods and services within an economy.

Real GDP

Real GDP (Gross Domestic Product) measures a country's economic output adjusted for inflation, providing a more accurate view of an economy's size and growth rate over time.

GDP

The comprehensive market valuation of all final goods and services fabricated within a country's geographical boundaries in a set period defines Gross Domestic Product.