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Management · Q111

Financial Management

Graduate and Post Graduate · Management · question 111

Q111

This type of risk is avoidable through proper diversification.

A.
portfolio risk
B.
systematic risk
C.
unsystematic risk
Answer
D.
total risk

Answer: Option C

Solution

Answer: Option C
Solution:
Unsystematic type of risk is avoidable through proper diversification. Unsystematic risk, also known as specific risk or idiosyncratic risk, is a category of risk that only affects an industry or a particular company. Unsystematic risk is the risk of losing an investment due to company or industry-specific hazard.