NaomiNi5395 NaomiNi5395

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Portfolio diversification eliminates which of the following?A. Total investment riskB. Reward for bearing riskC. Market-wide riskD. Unsystematic risk

Answer :

Kristiania Kristiania

Today at 12:21 PM

Answer:

D. Unsystematic risk

Explanation:

Unsystematic risk -

This type of risk is fixed or specific for a particular industry or company , is known as Unsystematic risk and also " residual risk " , " diversifiable risk " , " specific risk " , “ nonsystematic risk ” .

This Unsystematic risk can be avoided via diversification , in case of an investment portfolio .

Hence , from the question , the correct term for the given statement is D. Unsystematic risk .

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