Which Type of Risk Can an Investor Effectively Manage by Investing

question 10

Multiple Choice

Which type of risk can an investor effectively manage by investing in broadly diversified mutual funds?

• A)Serial risk
• B)Systematic risk
• C)Unsystematic risk
• D)None of the above is correct.

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Definitions:

Monthly Financial Advantage

This term does not correspond to a widely recognized financial concept. However, it could refer to the monthly surplus or savings that a business or individual achieves after covering all their expenses.

Outside Supplier

A third-party entity or company that provides goods or services to another company, typically not affiliated with the purchasing company's internal structure.

Grinding Machines

Mechanical equipment designed for the surface finishing of workpieces by removing material through abrasion, often used in manufacturing and metalworking.

Least Profitable

Refers to the product, service, or segment generating the lowest amount of profit compared to others.