Unsystematic Risk

question 30

Multiple Choice

Unsystematic risk

• A)can be effectively eliminated through portfolio diversification.
• B)is measured by beta.
• C)is compensated for by the risk premium.
• D)is nondiversifiable.
• E)is related to the overall economy.

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Definitions:

Expression

A combination of symbols and numbers that, together, represent a value or concept.

Simplify

Simplifying in mathematics involves altering an expression or equation to make it easier to work with, often by combining like terms and reducing expressions to their simplest form.

Expression

A combination of symbols that represent a quantity or relationship but do not resolve to a single numerical value.

Simplify

The process of reducing an expression to its simplest or most basic form, often by combining like terms or applying algebraic rules.