Multiple Choice
Which of the following is the only risk that is relevant to a rational, diversified investor, because it cannot be eliminated or reduced through diversification?
A) Diversifiable risk
B) Stand-alone risk
C) Market risk
D) Unsystematic risk
E) Firm-specific risk
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q1: Other things held constant, if the expected
Q2: Which of the following statements about the
Q3: In a given portfolio, replacing an existing
Q4: A stock's beta coefficient measures the tendency
Q6: Systematic risk is diversifiable, so it is
Q7: The standard deviation of the returns of
Q8: According to the capital asset pricing model
Q9: Darren has the option of investing in
Q10: The risk-free rate of return is 5
Q11: The risk that is limited to a