The Risk That Cannot Be Eliminated by Diversification Is Called

question 35

True/False

The risk that cannot be eliminated by diversification is called market risk.

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Definitions:

Marginal Propensity

The ratio of the change in an economic agent's consumption as a result of a change in income, influencing saving and spending habits.

Save

To allocate income or resources for future use instead of immediate consumption, often by placing it in some form of a bank account or investment.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources, generally classified as residential, commercial, or industrial properties.

Desirable Neighborhoods

Areas that are highly sought after by homebuyers and renters due to factors like safety, amenities, good schools, and proximity to employment opportunities.