Diversification can reduce or eliminate ________ risk.
A) all
B) systematic
C) nonsystematic
D) only an insignificant

Question

Quizplus · Accepted Answer

Diversification can eliminate or reduce nonsystematic risk, which is the risk associated with a particular company or industry. Systematic risk, which is the overall market risk, cannot be eliminated through diversification. All risk cannot be eliminated through diversification as there is always some inherent uncertainty in investing.

Diversification Can Reduce or Eliminate ________ Risk