Beginning with an investment in one company's securities,as we add securities of other companies to our portfolio,which type of risk declines?
A) systematic risk
B) market risk
C) non-diversifiable risk
D) unsystematic risk

Question

Quizplus · Accepted Answer

As we add securities of other companies to our portfolio, the unsystematic risk of the portfolio declines. Unsystematic risk is the risk associated with individual securities or companies and can be diversified away by combining different securities in a portfolio.

Beginning with an Investment in One Company's Securities,as We Add