Q758
Risk on a stock portfolio which cannot be eliminated or reduced by placing it in diversified portfolio is classified as
A.
diversifiable risk
B.
market risk
AnswerC.
stock risk
D.
portfolio risk
Answer: Option B
Solution
Answer: Option B
Solution:
Risk on a stock portfolio which cannot be eliminated or reduced by placing it in diversified portfolio is classified as market risk. Market risk is the possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets in which he or she is involved.