For an investor,nonsystematic risk can be eliminated through:

Question

Quizplus · Accepted Answer

Nonsystematic risk is also known as company-specific risk and can be reduced through diversification. By investing in a variety of assets, an investor can spread their risk and protect against the negative impact of any single company or sector. Avoiding transaction costs and sterilization do not directly address the issue of nonsystematic risk. Increased variance actually increases the level of risk, rather than reducing it.

For an Investor,nonsystematic Risk Can Be Eliminated Through