Which one of the following risks is most important to a well-diversified investor in common stocks?
A) Market risk
B) Unique risk
C) Unsystematic risk
D)Diversifiable risk

Question

Quizplus · Accepted Answer

Market risk, also known as systematic risk, is the most important to a well-diversified investor because it affects all investments across the market and cannot be eliminated through diversification. Unique risk, unsystematic risk, and diversifiable risk are all terms that refer to specific risks that can be mitigated through diversification.

Which One of the Following Risks Is Most Important to a Well-Diversified