Which One of the Following Statements Applies to Unsystematic Risk

question 14

Multiple Choice

Which one of the following statements applies to unsystematic risk?

• A)It can be eliminated through portfolio diversification.
• B)It is also called market risk.
• C)It is a type of risk that applies to most, if not all, securities.
• D)Investors receive a risk premium as compensation for accepting this risk.
• E)This risk is related to expected returns.

---

Definitions:

Brain Abnormalities

Structural or functional deviations in the brain from the normal, which can be associated with various neurological or mental health conditions.

Electroencephalogram (EEG)

A test that detects electrical activity in your brain using small, flat metal discs (electrodes) attached to your scalp.

Brain Waves

Electrical patterns in the brain that can be measured using an electroencephalogram (EEG) and are associated with different states of consciousness.

Electrical Activity

The movement of electrons or ions as part of a process within systems, particularly in biological contexts such as neural or cardiac functioning.