"Do not put all your eggs in one basket" is advice that seeks to reduce
A)idiosyncratic risk.
B)nondiversifiable risk.
C)systemic risk.
D)market risk.

Question

Quizplus · Accepted Answer

The advice "do not put all your eggs in one basket" is related to diversification, which aims to reduce idiosyncratic risk, or the risk that is specific to a particular asset or company. By not investing all your money in one asset or company, but instead spreading it across different assets or companies, you reduce the impact of any negative events that may affect one specific asset or company, thereby reducing idiosyncratic risk. The other options - nondiversifiable risk, systemic risk, and market risk - refer to different types of risk that cannot be diversified away through diversification alone.

"Do Not Put All Your Eggs in One Basket" Is