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11 December, 04:27

Unsystematic risk:

a. can be effectively eliminated through portfolio diversification.

b. is compensated for by the risk premium.

c. is measured by beta.

d. cannot be avoided if you wish to participate in the financial markets.

e. All of the above.

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Answers (2)
  1. 11 December, 04:54
    0
    The correct answer is a. can be effectively eliminated through portfolio diversification.

    Explanation:

    Unsystematic risk unique to a certain company and is diversifiable
  2. 11 December, 07:16
    0
    The correct answer is letter "A": can be effectively eliminated through portfolio diversification.

    Explanation:

    Unsystematic risk is a threat unique to the company or industry that is inherent in every investment. Examples of unsystematic risk include a new competitor, a change to legislation or a change in management. Through diversifying into other stocks or markets, or other forms of securities such as treasuries and municipal bonds, investors can significantly reduce unsystematic risks.
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Home » Business » Unsystematic risk: a. can be effectively eliminated through portfolio diversification. b. is compensated for by the risk premium. c. is measured by beta. d. cannot be avoided if you wish to participate in the financial markets. e. All of the above.
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