Unsystematic risk is:
A)The risk of overall market factors
B)The risk related to an individual company
C)Given a benchmark value of 1
D)Correlated with market returns
E)None of the above

Question

Quizplus · Accepted Answer

Unsystematic risk is the risk related to an individual company, as opposed to systematic risk which is associated with overall market factors. Therefore, option B is the correct answer. Options A, C, and D are all characteristics of systematic risk. Option E is not a valid choice as it does not provide any answer.

Unsystematic Risk Is