_______ risk is the portion of a security's total risk that is not related to moves in various common factors.
A) non-market
B) factor
C) nominal
D) idiosyncratic

Question

Quizplus · Accepted Answer

Idiosyncratic risk, also known as company-specific risk, is the portion of a security's total variability that is not related to changes in the overall market, economic, or political environment. This type of risk is unique to the individual company and cannot be diversified away through a well-diversified portfolio.

_______ Risk Is the Portion of a Security's Total Risk