Another Name for Diversifiable Risk Is

question 138

Multiple Choice

Another name for diversifiable risk is

• A) systemic risk.
• B) inflation risk.
• C) idiosyncratic risk.
• D) cyclical risk.

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Definitions:

Spot Exchange Rate

The exchange rate on a spot trade.

Forward Exchange Rate

The agreed-on exchange rate to be used in a forward trade.

Premium

The amount paid for a contract or policy over and above its nominal value or for a product above its market price due to special features or quality.

Direct Exchange Rate

The amount of domestic currency needed to purchase one unit of a foreign currency.