Unique risk is also referred to as
A)systematic risk, diversifiable risk.
B)systematic risk, market risk.
C)diversifiable risk, market risk.
D)diversifiable risk, firm-specific risk.
E)none of the above.

Question

Quizplus · Accepted Answer

Unique risk is also known as firm-specific risk or diversifiable risk because it can be eliminated through diversification of investments. Systematic risk or market risk, on the other hand, cannot be diversified away as it affects the entire market or economy.

Unique Risk Is Also Referred to as