Unique risk is also referred to as
A) systematic risk,diversifiable risk.
B) systematic risk,market risk.
C) diversifiable risk,market risk.
D) diversifiable risk,firm-specific risk.
E) market risk.

Question

Quizplus · Accepted Answer

Unique risk is also known as firm-specific risk or diversifiable risk, which refers to the risk that is unique to a particular company or industry and can be reduced through diversification. It is not related to broader market factors, hence it is not classified as systematic or market risk (options A, B, and E).

Unique Risk Is Also Referred to as