Examlex
The following adjusting journal entry does not include an explanation. Select the best explanation for the entry.
Nondiversifiable Risk
Also known as systematic risk, it refers to the portion of an investment's risk that cannot be eliminated through diversification, affecting the entire market or economy.
Diversifiable Risk
A type of investment risk that can be reduced through diversification of a portfolio across different assets, sectors, or geographical locations.
Unique Risk
Risk that is specific to an individual asset or company, which can be mitigated through diversification.
Firm-Specific
Refers to risk or information that is unique to a particular company and not related to the market or industry.
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