Which Risk Can Be Diversified Away as Additional Securities Are

question 50

Multiple Choice

Which risk can be diversified away as additional securities are added to a portfolio?
I.Total risk
II.Systematic risk
III.Firm specific risk

• A) I only
• B) I and II only
• C) I, II, and III
• D) I and III

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Definitions:

Payable

An amount of money that is owed and should be paid.

Definite Period

A specific, fixed duration of time identified in a contract or agreement during which certain actions must be performed or conditions met.

Presented

Shown, given, or made available for viewing or consideration.

Payment

The transfer of money or goods from one party to another as compensation for goods or services provided or as a fulfillment of a legal obligation.