Non-systematic risk is also known as_____________.

riskless
market risk
random risk
company-specific risk

The correct answer is: D. company-specific risk

Non-systematic risk is also known as company-specific risk because it is the risk that is specific to a particular company or industry. This type of risk can be caused by factors such as changes in management, product recalls, or natural disasters. It is also known as diversifiable risk because it can be reduced by investing in a diversified portfolio of assets.

A. Riskless is not the correct answer because there is no such thing as a riskless investment. All investments carry some degree of risk.

B. Market risk is the risk that is inherent in the overall market. This type of risk cannot be diversified away and is therefore borne by all investors.

C. Random risk is not the correct answer because it is not a specific type of risk. It is a general term used to describe any type of risk that cannot be predicted or controlled.

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