Unsystematic risk
A)is increased through diversification
B)is reduced when markets fluctuate less
C)is affected by the nature of how a firm finances its operations
D)increases during periods of volatile interest rates

Question

Quizplus · Accepted Answer

Unsystematic risk, also known as specific or idiosyncratic risk, is directly related to the operations and performance of individual companies. Therefore, it is affected by the nature of how a firm finances its operations, among other factors specific to the company itself.

Unsystematic Risk