Risk That Cannot Be Eliminated by Diversification Is Referred to as

question 18

Multiple Choice

Risk that cannot be eliminated by diversification is referred to as

• A)idiosyncratic risk.
• B)market risk.
• C)default risk.
• D)interest-rate risk.

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Definitions:

Deposition

A pretrial question and answer proceeding, usually conducted orally, in which a party or witness answers an attorney's questions. The answers are given under oath, and the session is recorded.

Affirmative Defense

A defense in which the defendant introduces evidence to negate or reduce liability, rather than simply denying the plaintiff's allegations.

Answer

A defendant’s response to a plaintiff’s complaint.

Cross-Claim

A claim brought against a co-party in the same side of a legal action, asserting wrongdoing that contributed to the original lawsuit.