Company specific risk is also known as ________.

Market risk
Systematic risk
Non-diversifiable risk
Idiosyncratic risk

The correct answer is: D. Idiosyncratic risk.

Company-specific risk is also known as idiosyncratic risk because it is unique to a particular company. It is the risk that cannot be diversified away by holding a well-diversified portfolio. This type of risk is caused by factors that are specific to the company, such as its management team, its industry, and its financial condition.

Market risk, on the other hand, is the risk that affects all companies in the market. It is caused by factors that are beyond the control of any individual company, such as changes in interest rates, inflation, and economic growth.

Systematic risk is a combination of market risk and company-specific risk. It is the risk that cannot be eliminated by diversification.

Non-diversifiable risk is another term for systematic risk.

I hope this helps! Let me know if you have any other questions.

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