Q781
A risk which is classified as its contribution to risk of portfolio is classified as
A.
classified risk
B.
contributed risk
C.
irrelevant risk
D.
relevant risk
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
A risk which is classified as its contribution to risk of portfolio is classified as relevant risk. Relevant risk is the fluctuation of returns caused by the macroeconomic factors that affect all risky assets.