A saver can eliminate _______ risk through _______.
A) systemic; diversification
B) idiosyncratic; diversification
C) systemic; asset valuation
D) idiosyncratic; asset valuation

Question

Quizplus · Accepted Answer

A saver can eliminate idiosyncratic (or company-specific) risk through diversification, which involves investing in a variety of assets in different industries or sectors to spread out risk. Systemic risk, on the other hand, is related to the overall economy or market and cannot be eliminated through diversification alone. Asset valuation can also help manage risk, but it cannot eliminate it completely.

A Saver Can Eliminate _______ Risk Through _______

A Saver Can Eliminate _ Risk Through _