Which of the Following Risk Types Can Be Diversified by Adding

question 92

Multiple Choice

Which of the following risk types can be diversified by adding stocks to a portfolio?

• A)Systematic risk
• B)Unique risk
• C)Default risk
• D)Market risk

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Definitions:

Communal Relationships

Interpersonal relationships where parties give and receive benefits in response to the other's needs, rather than for personal gain.

Social Species

Species that rely on social connections and groups for survival, exhibiting complex behaviors related to living in communities.

Baumeister and Leary

Refer to psychologists Roy Baumeister and Mark Leary, known for their work on the need to belong theory, which posits that humans have a fundamental drive to form and maintain interpersonal relationships.

Creative

Relating to or involving the imagination or original ideas, especially in the production of an artistic work.