SIE Exam Practice Question 924
Question: 924
__________ risk cannot be eliminated through diversification because it affects the entire market. __________ risk may be diversified away or avoided by not investing in securities that exhibit the risk.
Correct Answer: C
Explanation:
Systematic risk cannot be eliminated through diversification because it affects the entire market. Unsystematic risk may be diversified away or avoided by not investing in securities that exhibit the risk.
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