Which One of the Following Statements Applies to Unsystematic Risk

question 14

Multiple Choice

Which one of the following statements applies to unsystematic risk?

• A)It can be eliminated through portfolio diversification.
• B)It is also called market risk.
• C)It is a type of risk that applies to most, if not all, securities.
• D)Investors receive a risk premium as compensation for accepting this risk.
• E)This risk is related to expected returns.

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Definitions:

Colonial Ventures

Refer to expeditions, settlements, and enterprises established by colonial powers in foreign lands, primarily from the 15th to the 20th century.

Political Freedoms

The rights of individuals in a society to participate in political life, including freedoms of speech, assembly, and the ability to vote or run for office.

Social Hierarchy

The organization of society into levels based on factors like wealth, occupation, or ancestry, where certain groups have more power and resources than others.

Control Trade

The regulation or governance of international trade by governmental or intergovernmental policies and laws to manage imports and exports.