Risk that affects at most a small number of assets is called:
A) Portfolio risk.
B) Undiversifiable risk.
C) Market risk.
D) Unsystematic risk.
E) Total risk.

Question

Quizplus · Accepted Answer

Unsystematic risk, also known as specific risk, diversifiable risk, or idiosyncratic risk, affects at most a small number of assets. It is unique to a particular company or industry and can be reduced through diversification.

Risk That Affects at Most a Small Number of Assets