SIE Exam Practice Question 402
Question: 402
Single stock, or single sector, risk is more generally in the category described as:
Correct Answer: C
Explanation:
C: Non-systematic risk is business risk --- the risk of putting all your eggs in one basket, in one company, in one business sector…..and if that business does badly, you lose. Diversification is a good way of mitigating this risk.
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