Non-Diversifiable Risk

Multiple Choice

Non-diversifiable risk:

A) can be cut almost in half by investing in 10 stocks provided each stock is in a different industry.
B) can almost be eliminated by investing in 35 diverse securities.
C) remains constant regardless of the number of securities held in a portfolio.
D) has little, if any, impact on the actual realized returns for a diversified portfolio.
E) should be ignored by investors.