Most undiversifiable risk can be eliminated by creating a portfolio of around 30 stocks.

Name: Most undiversifiable risk can be eliminated by creating a portfolio of around 30 stocks.
Brand: Quizplus
Rating: 4.8 (34 reviews)

Question

Quizplus · Accepted Answer

Undiversifiable risk, also known as systematic or market risk, affects the entire market and cannot be eliminated through diversification. Diversification primarily reduces unsystematic risk, which is specific to individual stocks or sectors.

Most Undiversifiable Risk Can Be Eliminated by Creating a Portfolio