What Type of Risk Does Diversification Eliminate

question 169

Multiple Choice

What type of risk does diversification eliminate?

• A) Systematic risk.
• B) Unsystematic risk.
• C) Market risk.
• D) It doesn't eliminate any risk.

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Definitions:

Mechanical Solidarity

A form of social cohesion that arises in traditional societies from a shared culture, kinship, and beliefs, making society function as a cohesive unit.

Morality

Morality encompasses the differentiation of intentions, decisions, and actions between those that are distinguished as proper and those that are improper. It is often guided by cultural, religious, or philosophical principles.

Anomic Suicides

A concept in sociology referring to suicides that occur due to a breakdown in social bonds or norms, often in times of social or economic upheaval.

Morality

A system or code of conduct and principles that governs the behavior of individuals within a society, distinguishing between right and wrong.