Idiosyncratic risk:
A) cannot be eliminated through diversification.
B) is unique to a company or asset.
C) is only present in index funds.
D) All of these are true.

Name: Idiosyncratic risk: A) cannot be eliminated through diversification. B) is unique to a company or asset. C) is only present in index funds. D) All of these are true.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Idiosyncratic risk is specific or unique to a particular company or asset and cannot be eliminated through diversification. It is not limited to index funds only.

Idiosyncratic Risk