Which of the following terms can be used to describe unsystematic risk? I. asset-specific risk
II) diversifiable risk
III) market risk
IV) unique risk
A) I and IV only
B) II and III only
C) I, II, and IV only
D) II, III, and IV only
E) I, II, III, and IV

Question

Quizplus · Accepted Answer

Unsystematic risk is specific to a particular asset or company and can be reduced through diversification. It is also known as asset-specific risk, diversifiable risk, and unique risk. Market risk, however, is systematic and affects the entire market.

Which of the Following Terms Can Be Used to Describe