Risk that affects at most a small number of assets is called _____ risk.
A)portfolio
B)undiversiﬁable
C)market
D)unsystematic
E)total

Question

Quizplus · Accepted Answer

Unsystematic risk, also known as specific risk, affects only a small number of assets or companies and can be reduced through diversification. Portfolio risk refers to the risk associated with holding a particular set of assets, and can be diversified away to some extent. Market risk, also known as systematic risk, is the risk associated with the overall market or economy and cannot be diversified away. Total risk is the combination of unsystematic and systematic risk.

Risk That Affects at Most a Small Number of Assets