The Risk That Cannot Be Diversified Away Is

question 30

Multiple Choice

The risk that cannot be diversified away is

• A)firm-specific risk.
• B)unique.
• C)non-systematic risk.
• D)market risk.
• E)none of the above.

---

Definitions:

Novation

The act of replacing an obligation to perform with a new obligation, or replacing a party to an agreement with a new party.

Valid Obligation

A legal term denoting a binding duty or commitment that has been established through proper legal or contractual procedures, enforceable by law.

Mutual Agreement

A mutual agreement is an understanding or contract between two or more parties, where all have a concurrence of will on the terms and conditions.

Consent Restraint

Limitations or restrictions placed on actions or decisions based on the consent of the parties involved, often relating to contracts or agreements.