The risk that is limited to a particular industry is also known as _____.
A) unsystematic risk
B) non-diversifiable risk
C) market risk
D) relevant risk
E) combined risk

Question

Quizplus · Accepted Answer

Unsystematic risk, also known as specific risk or diversifiable risk, affects a particular company or industry and can be reduced through diversification. This is in contrast to market risk, which affects the overall market and cannot be eliminated through diversification. Non-diversifiable risk and combined risk are other terms for market risk. Relevant risk is a broader term that encompasses all types of risks that are relevant to a particular decision or situation.

The Risk That Is Limited to a Particular Industry Is