The Risk Remaining After Extensive Diversification Is Primarily ____

question 57

Multiple Choice

The risk remaining after extensive diversification is primarily ____.

• A) unsystematic risk
• B) systematic risk
• C) coefficient of variation risk
• D) standard deviation risk

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Definitions:

Spot Exchange Rate

The current exchange rate at which one currency can be exchanged for another for immediate delivery.

Risk-free Rates

Risk-free Rates represent the return on investment of an absolutely safe asset, with no risk of financial loss, typically exemplified by treasury bills of a stable government.

Spot Exchange Rate

The existing exchange value for immediate buying or selling of a currency.

Futures Price

The agreed-upon price for the future delivery of a particular commodity, financial instrument, or currency.