Which of the Following Risk Types Can Be Diversified by Adding

question 66

Multiple Choice

Which of the following risk types can be diversified by adding stocks to a portfolio?

• A)systematic risk
• B)unique risk
• C)default risk
• D)market risk

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Definitions:

Mentally Representing

The process of forming internal cognitive symbols, images, or concepts of external reality in the mind.

Semantic Memory

A type of long-term memory that involves the storage of general knowledge of the world, concepts, facts, and meanings of words and symbols.

American Civil War

A conflict between Northern and Southern states of the United States from 1861 to 1865 over issues including states' rights and slavery.

Historic Event

A significant occurrence or happening in the past that has shaped or altered the course of history.