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Commerce · Q132

Financial Management

Graduate and Post Graduate · Commerce · question 132

Q132

The relevant risk for a well-diversified portfolio is____________.

A.
interest rate risk
B.
inflation risk
C.
business risk
D.
market risk
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
The relevant risk for a well-diversified portfolio is 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.