Examlex
Which of the following is the making of an entry into the books of a bank or corporation that is designed to represent the existence of funds that do not exist?
Systematic Risk
The inherent risk affecting the overall market or a particular sector, which cannot be eliminated through diversification.
Market Risk
The risk of losses in investments due to factors that affect the entire market or asset class, such as economic changes or political events.
Firm-specific Risk
The type of risk that affects a particular company or industry, also known as unsystematic risk.
Diversified Away
The risk that can be reduced or eliminated in a portfolio through investments in a variety of assets, thus not tied to the performance of a single investment.
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