Diversifiable Risk Is Also Referred to as

question 24

Multiple Choice

Diversifiable risk is also referred to as

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

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Definitions:

Expense Ratio

A measure depicting the percentage of a fund's assets that are used for administrative and other operating expenses, directly affecting investors' returns.

Mutual Fund

An investment company pooling and managing funds of investors.

Significant Leverage

Utilization of borrowed money or financial instruments to increase the potential return of an investment.

Hedge Funds

Investment funds that use advanced strategies, including leverage, derivatives, and short selling, aiming for high returns.