The Variance That Can Be Eliminated Through Portfolio Diversification Is

question 5

Multiple Choice

The variance that can be eliminated through portfolio diversification is called the

• A) diversification risk.
• B) systematic risk.
• C) covariance risk.
• D) nonsystematic risk.

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Definitions:

Focus Your Attention

The cognitive process of concentrating one's awareness on a particular object, task, or thought, and ignoring other perceivable information.

Semantic Memory

Refers to a part of the long-term memory responsible for storing information about the world, such as meanings of words and concepts.

General Knowledge

Information that has been accumulated over time through various sources about a wide range of subjects.

Procedural Memory

A type of long-term memory involved in the learning and retention of motor skills and habits.