The risk that is linked across outcomes is called ________.
A) diversifiable risk
B) common risk
C) uncorrelated risk
D) independent risk

Question

Quizplus · Accepted Answer

Common risk is the risk that affects multiple outcomes, and is therefore not diversifiable. Uncorrelated risk refers to risk that is not related or dependent on other risks. Independent risk refers to risks that are unrelated and do not affect each other. Therefore, the best answer is B.

The Risk That Is Linked Across Outcomes Is Called ________