Risk that can be eliminated by diversification is

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Idiosyncratic risk, also known as company-specific risk, can be reduced or eliminated through diversification because it is related to individual companies instead of the broader market. By investing in a portfolio of different companies, the impact of any one company's idiosyncratic risk is lessened, leading to potentially less volatile returns overall. Market risk, default risk, and interest-rate risk cannot be fully eliminated through diversification.

Risk That Can Be Eliminated by Diversification Is