________ risk is simply the variability in the returns of an investment that is due to events that are unrelated to the overall market.
A)Systematic
B)Unsystematic
C)Non-diversifiable
D)Portfolio

Question

Quizplus · Accepted Answer

Unsystematic risk, also known as specific risk or diversifiable risk, is the risk that can be eliminated through diversification because it is associated with specific companies, industries, or events. This type of risk is not related to the overall market and can be managed through proper diversification of investment portfolio. Systematic risk, on the other hand, is the risk that affects the entire market and cannot be diversified away. Non-diversifiable risk is another term used for systematic risk. Portfolio risk refers to the risk associated with the entire investment portfolio, regardless of whether it is systematic or unsystematic in nature.

________ Risk Is Simply the Variability in the Returns of an Investment