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Which Risk Can Be Partially or Fully Diversified Away as Additional

question 26

Multiple Choice

Which risk can be partially or fully diversified away as additional securities are added to a portfolio?
I. Total risk
II. Systematic risk
III. Firm-specific risk


Definitions:

Primary Aging

The natural and inevitable biological and physiological changes that occur with advancing age, regardless of health habits.

Secondary Aging

The aging process that results from lifestyle choices and environmental factors, in contrast to primary aging which is genetically driven.

Life Expectancy

The average period that a person may expect to live, which varies depending on a multitude of factors such as genetics, lifestyle, and socio-economic status.

Longevity

The length of time that an individual lives, often used in context of factors that contribute to a long life.

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