If You Build a Large Enough Portfolio, You Can Diversify

question 94

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) undiversifiable, diversifiable

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Definitions:

Forces Resisting Change

Various factors or entities within an organization that oppose or hinder change efforts, including but not limited to organizational inertia, cultural barriers, and individual resistance.

Reward System

Mechanisms in an organization to recognize and reward employees' performance and contributions.

Job Duties

The set of responsibilities and tasks that an individual is expected to perform as part of their employment.

Discovery

The act of finding or uncovering something that was previously unknown or unrecognized, often leading to new knowledge or innovations.