Q773
Risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as
A.
stock risk
B.
portfolio risk
C.
diversifiable risk
AnswerD.
market risk
Answer: Option C
Solution
Answer: Option C
Solution:
Risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as diversifiable risk. Diversifiable risk is the possibility that there will be a change in the price of a security because of the specific characteristics of that security.