If an investor plans to add a stock to a well-diversified portfolio,the investor should first consider the ________ risks of that additional stock.
A)expected total
B)historical total
C)systematic
D)idiosyncratic
E)firm-specific

Question

Quizplus · Accepted Answer

In a well-diversified portfolio, the primary concern is systematic risk, as idiosyncratic or firm-specific risks are largely mitigated through diversification.

If an Investor Plans to Add a Stock to a Well-Diversified