Through Diversification It Is Possible to Eliminate All of the Company-Specific

question 132

True/False

Through diversification it is possible to eliminate all of the company-specific risk inherent in owning stocks.However,as a general rule it will not be possible to eliminate systematic (market)risk.

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Definitions:

Open Day

An event typically organized by institutions or organizations where they open their doors to the public for informational and promotional purposes.

Charity Collector

An individual who collects funds or donations for charitable organizations or causes, often through direct solicitation of the public.

Volunteer

An individual who offers services or efforts willingly and without financial compensation.

Mere Exposure Effect

A psychological phenomenon by which people tend to develop a preference for things merely because they are familiar with them.