Unsystematic risk is also known as:
A) market risk
B) undiversifiable risk
C) firm-specific risk
D) macroeconomic risk

Question

Quizplus · Accepted Answer

Unsystematic risk is specific to a particular company or industry and cannot be diversified away by investing in a portfolio of assets. It includes factors such as management quality, competition, operational efficiency, and other company-specific events. Therefore, it is also known as firm-specific risk.

Unsystematic Risk Is Also Known As