Nondiversifiable risk is also referred to as
A) systematic riskor unique risk.
B) systematic riskor market risk.
C) unique riskor market risk.
D) unique riskor firm-specific risk.

Question

Quizplus · Accepted Answer

Nondiversifiable risk, which affects all investments and is linked to factors like economic, political, and social changes, is also known as systematic risk or market risk. Unique risk or firm-specific risk, on the other hand, can be diversified away.

Nondiversifiable Risk Is Also Referred to as