In general, it is possible to eliminate ________ risk by holding a large portfolio of assets.
A) unsystematic
B) systematic
C) unsystematic and systematic
D) market specific

Question

Quizplus · Accepted Answer

Holding a large portfolio of assets can help eliminate unsystematic risk, which is specific to individual assets or companies. Systematic risk, however, cannot be eliminated through diversification as it affects the overall market or economy.

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