Risk That Affects at Most a Small Number of Assets

question 69

Multiple Choice

Risk that affects at most a small number of assets is called _____ risk.

• A)portfolio
• B)undiversifiable
• C)market
• D)unsystematic
• E)total

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Definitions:

Disaffirm

Disaffirm refers to the legal act of renouncing or nullifying a contract or agreement, especially employed when one party to the agreement is not capable of fully understanding their obligations due to age or mental state.

Good Faith

Acting with honesty, fairness, and without deceit or fraud in transactions or interactions.

Emancipated

Refers to a legal process through which a minor gains legal independence from their parents or guardians before reaching adulthood.

Disaffirmance

The legal act of rejecting or voiding a contract or agreement, especially by one party who was a minor at the time of entering the contract.