If You Build a Large Enough Portfolio,you Can Diversify Away

question 19

Multiple Choice

If you build a large enough portfolio,you can diversify away all ________ risk,but you will be left with ________ risk.

• A)diversifiable,unsystematic
• B)unsystematic,systematic
• C)systematic,undiversifiable
• D)diversifiable,diversifiable
• E)common,unsystematic

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Definitions:

Outsourcing

The business practice of hiring external parties to perform services or create goods that traditionally were performed in-house by the company's own staff.

Standards of Service

Benchmarks set by an organization to measure the quality of service delivered to its customers, ensuring consistency and satisfaction.

Contracts

Legally binding agreements between two or more parties that define and govern the rights and duties pertaining to a particular arrangement.

Core Work

The primary or essential tasks and responsibilities that are central to a job or organization’s operational goals.