Total risk equals _________________.
A) market risk plus firm-specific risk,
B) firm-specific risk plus diversifiable risk,
C) systematic risk minus unsystematic risk,
D) diversifiable risk plus unsystematic risk,
E) market risk plus non-diversifiable risk,

Question

Quizplus · Accepted Answer

Total risk is the sum of market risk (also known as systematic or non-diversifiable risk) and firm-specific risk (also known as unsystematic or diversifiable risk).

Total Risk Equals _________________