Question

The risk that cannot be diversified away is Group of answer choices unique risk and non-systematic risk. market and non-systematic risk. unique and idiosyncratic risk. systematic risk. firm-specific risk. g

Answer 1

Answer:

firm-specific risk.

Explanation:

Firm-specific risk can be regarded as unsystematic risk tht is associated with a specific investment in a particular firm, and as regards to theory of finance this is completely diversifiable.

Under this risk, It is possible for an investor to lower their risk through increament of the number of investments that they are having in their portfolio. As regards investor,

specific risk can be regarded as hazard which applies to a specific company.

It should be noted that The risk that cannot be diversified away is firm-specific risk.