Vidyalelo
Commerce · Q687

Financial Management

Graduate and Post Graduate · Commerce · question 687

Q687

An unsystematic risk which can be eliminated but market risk is the

A.
aggregate risk
B.
remaining risk
Answer
C.
effective risk
D.
ineffective risk

Answer: Option B

Solution

Answer: Option B
Solution:
An unsystematic risk which can be eliminated but market risk is the An unsystematic risk which can be eliminated but market risk is the remaining risk. Unsystematic risk is the risk that is inherent in a specific company or industry. By investing in a range of companies and industries, unsystematic risk can be drastically reduced through diversification.