The terms ________ and ________ mean the same thing.
A)nondiversifiable risk; unsystematic risk
B)diversifiable risk; systematic risk
C)diversifiable risk; unsystematic risk
D)total risk; unique risk

Question

Quizplus · Accepted Answer

Diversifiable risk and unsystematic risk are interchangeable terms referring to the risk that can be eliminated through diversification of investments in a portfolio. Total risk and unique risk are distinct concepts from diversifiable/unsystematic risk, and nondiversifiable risk and systematic risk are interchangeable terms referring to the risk that cannot be eliminated through diversification.

The Terms ________ and ________ Mean the Same Thing

The Terms and Mean the Same Thing