Which of the Following Is Not Risk That Can Be

question 293

Multiple Choice

Which of the following is not risk that can be diversified out of a portfolio of stocks?

• A)unsystematic
• B)systematic
• C)firm specific
• D)company-unique

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Definitions:

Tombstone

A stone marker, typically inscribed, placed over a grave.

Limit Order

Order that puts a ceiling or floor on a security purchase or sale.

Check Clearing

The process of transferring funds from the check writer's account to the recipient's account.

Insider Trading

Use of material nonpublic information about a company to make investment profits.