Question

Total risk of a portfolio include:

A Unique risk plus diversifiable risk Correct Answer Incorrect Answer
B Market risk plus non-diversifiable risk Correct Answer Incorrect Answer
C Systematic risk plus unsystematic risk Correct Answer Incorrect Answer
D Systemic risk Correct Answer Incorrect Answer
E None of the above Correct Answer Incorrect Answer

Solution

Total risk includes systematic plus unsystematic risk. Unique risk is diversifiable and is unsystematic. Market risk (systematic risk) is a non-diversifiable risk.

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