Risk That Can Be Eliminated Through Diversification Is ~ Life News

Risk that can be eliminated through diversification is called _____ risk. A. , unique B. , firm-specific C. , diversifiable D. , all of these optionsA portfolio of stocks fluctuates when the Treasury yields change. Since this risk cannot be eliminated through diversification, it is called _____. A. firmspecific risk B. systematic risk C. unique risk D. none of the options1. Risk that can be eliminated through diversification is called _____ risk. A. unique B. firm-specific C. diversifiable D. all of the above Difficulty: Easy 2. The _____ decision should take precedence over the _____ decision.Reducing Specific Risk Through Diversification . Investors can reduce specific risk by diversifying their portfolios. Economists Lawrence Fisher and James H. Lorie found that specific risk76. A portfolio of stocks fluctuates when the treasury yields change. Since this risk can not be eliminated through diversification, it is called a. Firm specific risk b. Systematic risk c. Unique risk d. None of the above

Fin 302 Quiz 7 Flashcards | Quizlet

25. Risk that can be eliminated through diversification is called risk. a. unique b. firm-specific c. diversifiable d. all of the above 26. Adding additional risky assets will generally move the efficient frontier and to the _____. a. up, right b. up, left c. down, right d. down, left 27. Asset A has an expected return of 20% and a standardRisk that can be eliminated through diversification is called _____ risk. all of these options: unique, firm-specific, and diversifiable. The ____ decision should take precedence over the ____ decision.Systematic risk. Non-diversifiable risk is called systematic risk. It is the portion of total risk that can not be eliminated, controlled through diversification of assets. Systematic risk some time called market risk. Also can be mentioned as volatility, it consists of the day-to-day fluctuations in a stock's price. Unsystematic riskThe idiosyncratic risk can be defined as the risk which affects a very diminutive number of assets, and can be almost eradicated through diversification. It is quite similar to unsystematic risk. As explained by Investopedia, idiosyncratic risk is particular to a small number of stocks.

Risk that can be eliminated through diversification is

Risk that can be eliminated through diversification is called _____ risk. a. Unique b. Firm-specific c. Diversifiable d. All of the aboveDiversification cannot eliminate the risk of facing these events. Therefore, it is considered un-diversifiable risk. This type of risk accounts for most of the risk in a well-diversified portfolio. It is called systematic risk or market risk.Risk that can be eliminated through diversification is called _____ risk. - D. all of these options 2. Asset A has an expected return of 15% and a reward-to-variability ratio of . 4. Asset B has an expected return of 20% and a reward-to-variability ratio of .3. A risk-averse investor would prefer a portfolio using the risk-free asset andRisk that can be eliminated through diversification is called _____ risk. A) unique B) firm-specific C) diversifiable D) all of the aboveUnsystematic risk can be mitigated through diversification while systemic or market risk is generally unavoidable. Balancing a diversified portfolio may be complicated and expensive, and it may...

What are the sources of systematic risk?

Systematic risk, also known as marketplace risk, can not be decreased by means of diversification inside the stock marketplace. Sources of systematic risk include: inflation, rates of interest, conflict, recessions, forex changes, market crashes and downturns plus recessions.