The risk associated with a stock or a bond that is not correlated with events in the market is known as:
A) interest rate risk
B) model risk
C) currency risk
D) specific risk

Question

Quizplus · Accepted Answer

Specific risk, also known as unsystematic risk or company-specific risk, is the risk that is unique to an individual stock or bond and is not related to market movements or macroeconomic factors. It can be reduced through diversification.

The Risk Associated with a Stock or a Bond That