Unsystematic Risk Cannot Be Eliminated Through Diversification

question 38

True/False

Unsystematic risk cannot be eliminated through diversification.

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Definitions:

Depreciate

The process of allocating the cost of a tangible asset over its useful life, reflecting its decrease in value over time.

Cash Flow From Assets

The total amount of money being transferred into and out of a business, especially affecting the operational activities involving its assets.

Operating Cash Flow

Cash generated from a company's normal business operations.

Net Capital Spending

The total expenditure on fixed assets less any sales of fixed assets. It indicates how much a company is investing in its current and future operations.