Which One of the Following Risks Is Most Important to a Well-Diversified

question 86

Multiple Choice

Which one of the following risks is most important to a well-diversified investor in common stocks?

• A) Market risk
• B) Specific risk
• C) Unsystematic risk
• D) Diversifiable risk

---

Definitions:

Ford Fusion Hybrid

A hybrid electric vehicle model produced by Ford, known for its fuel efficiency and reduced emissions compared to traditional vehicles.

Lithium-Ion Battery

A type of rechargeable battery widely used in portable electronics and electric vehicles due to its high energy density.

Consideration Set

A group of brands or products a consumer evaluates as options when making a purchase decision.

Product Class

A broad category of products that serve a similar function or are related in terms of how they are used by consumers.