Five years ago,Shannon decided to start investing.She likes ABC Telecom Company,and she invests in the company each month.As ABC Telecom is the only company in which she invests,Shannon's financial well-being will be harmed if the price of ABC Telecom stock drops significantly.The risk of investment loss can be reduced if Shannon invests in other companies and other types of financial assets.For Shannon,the risk she faces with regard to her investments is a(n)

Question

Quizplus · Accepted Answer

Shannon's risk is diversifiable because it can be reduced by investing in a variety of companies and financial assets, rather than just one company.

Five Years Ago,Shannon Decided to Start Investing