If You Build a Large Enough Portfolio, You Can Diversify

question 94

Multiple Choice

If you build a large enough portfolio, you can diversify away all ________ risk, but you will be left with ________ risk.

• A) diversifiable, unsystematic
• B) unsystematic, systematic
• C) systematic, undiversifiable
• D) undiversifiable, diversifiable

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Definitions:

Competencies

The combination of skills, knowledge, and abilities that are required to perform a job effectively.

Training Effort

The intensity and resources devoted by an organization towards improving the skills and knowledge of its employees.

Teaching Skills

The abilities and techniques that enable an individual to effectively convey knowledge, facilitate learning, and foster development in others.

Personal Characteristics

The traits or attributes that define an individual's personality, behavior, and physical appearance.