Systematic Risk Is Diversifiable, So It Is an Investment's Relevant

question 6

True/False

Systematic risk is diversifiable, so it is an investment's relevant risk. Unsystematic risk is nondiversifiable risk and therefore not relevant. 

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Definitions:

Duty Of Care

A legal obligation requiring individuals to exercise a standard of reasonable care while performing acts that could foreseeably harm others.

Unforeseeable Risks

Risks that cannot reasonably be anticipated or predicted, often affecting contracts or liability.

Reasonable Person Standard

A measurement of the way members of society expect an individual to act in a given situation.

Privilege

A special right, advantage, or immunity granted or available only to a particular person or group.