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31 May, 06:46

Diversifiable risk is defined as:

A. Risk with two possible outcomes

B. Risk with three possible outcomes

C. An individual's perception of risk

D. None of the above

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Answers (1)
  1. 31 May, 07:31
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    Answer: Option D. None of the above

    Explanation:

    Diversifiable Risk is also refers to as unsystematic risk, which can be defined as the risk or danger of an event that would affect an industry and not the market. This type of risk can only be reduce through diversifying investments and maintaining a portfolio diversification. If a company or investor has a diversified portfolio, then the risk is reduced because the company's other investments will not be affected.
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