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Which of the Following Choices Completes the Sentence Correctly

question 32

Multiple Choice

Which of the following choices completes the sentence correctly?
A(n) _____ is a(n) ______ .


Definitions:

Unsystematic Portion

The segment of risk in an investment portfolio that can be mitigated through diversification, specific to individual securities.

Expected Return

The weighted average of all possible returns for an investment, with weights representing the probabilities of each outcome.

Total Risk

The entire range of uncertainties including market and specific risks that affect the value of an investment.

Unsystematic Risk

The risk associated with a particular company or industry, as opposed to the market as a whole; also known as specific or idiosyncratic risk.

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