Total risk is equal to market risk plus:
A) beta risk.
B) unique risk.
C) systematic risk.
D) nondiversifiable risk.

Question

Quizplus · Accepted Answer

Total risk is comprised of market risk (systematic risk) and unique risk (unsystematic risk). Market risk affects all investments across the market and cannot be diversified away, while unique risk is specific to individual investments and can be reduced through diversification.

Total Risk Is Equal to Market Risk Plus