asked 153k views
5 votes
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

asked
User Thus
by
8.5k points

1 Answer

0 votes

Answer:

Letter A is correct. Unsystematic.

Step-by-step explanation:

Unsystematic risk is that inherent in a specific sector of the market or company. The inherent risks of investing in only one company or industry may include the entry of new competitors, which may cause market loss, regulatory changes, managerial changes, withdrawal from the market and other uncertainties that are not always foreseeable by investors. .

Ideally to avoid this kind of risk is to invest in a diversified equity portfolio.

answered
User Mert Serimer
by
7.8k points
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