In general, it is possible to eliminate ________ risk by holding a large portfolio of assets.
A)systematic
B)unsystematic
C)unsystematic and systematic
D)none of the above

Question

Quizplus · Accepted Answer

Unsystematic risk is specific to a particular company or industry and can be diversified away by holding a large and diverse portfolio of assets. On the other hand, systematic risk cannot be eliminated through diversification as it is inherent in the overall market or economy.

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