Multiple Choice
Unsystematic risk:
A) can be effectively eliminated through portfolio diversification.
B) is compensated for, by the risk premium.
C) is measured by beta.
D) cannot be avoided if you wish to participate in the financial markets.
E) is related to the overall economy.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q94: The principle of diversification tells us that:<br>A)concentrating
Q95: The risk-free rate of return is 4%
Q96: What is the variance of a
Q97: You recently purchased a share that is
Q98: The primary purpose of portfolio diversification is
Q100: What is the expected return on
Q101: Which one of the following shares
Q102: You are comparing share A to
Q103: What is the standard deviation of
Q104: You have a portfolio of two risky