Nondiversifiable risk is also referred to as
A)systematic risk, unique risk.
B)systematic risk, market risk.
C)unique risk, market risk.
D)unique risk, firm-specific risk.

Question

Quizplus · Accepted Answer

Market, systematic, and nondiversifiable risk are synonyms referring to the risk that cannot be eliminated from the portfolio.Diversifiable, unique, nonsystematic, and firm-specific risks are synonyms referring to the risk that can be eliminated from the portfolio by diversification.

Nondiversifiable Risk Is Also Referred to as