In general,it is possible to eliminate ________ risk by holding a large portfolio of assets.

Question

Quizplus · Accepted Answer

Unsystematic risk refers to the risk factors that are specific to a particular company or industry. Holding a large portfolio of assets can help to eliminate unsystematic risk because the impact of any one company or industry will be diluted across the entire portfolio. Systematic risk, on the other hand, cannot be diversified away, as it is related to broader economic or market factors.

In General,it Is Possible to Eliminate ________ Risk by Holding