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.

---

Definitions:

Incremental Cash Inflow

The additional cash flow a company receives from undertaking a project or investment.

Sales Units

The total quantity or number of products sold by a company in a given period.

Net 30 Credit Policy

A payment term indicating that payment is due in full 30 days after goods or services have been delivered.

Monthly Interest Rate

The interest rate applied to a loan or investment for a one-month period, often used for calculating monthly payments.