The Portfolio Risk That Cannot Be Eliminated by Diversification Is

question 59

True/False

The portfolio risk that cannot be eliminated by diversification is called market risk.

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Definitions:

Dividend Policy

The policy a company uses to decide how much it will pay out to shareholders in dividends. It involves whether to distribute profits to shareholders or reinvest them in the business.

Residual Dividend

A policy where dividends are paid to shareholders from the leftover or "residual" profits after all operational and capital expenditures are met.

Reverse Stock Split

A corporate action where a company decreases the number of its existing shares to increase the share price without changing the company’s market capitalization.