portfolio risk
systematic risk
unsystematic risk
total risk
Answer is Right!
Answer is Wrong!
The correct answer is C. unsystematic risk.
Unsystematic risk is the risk that is specific to a particular company or industry. It can be avoided through proper diversification, which means investing in a variety of different assets. This will help to reduce the impact of any one company or industry performing poorly.
Portfolio risk is the total risk of a portfolio, which is the sum of the systematic and unsystematic risks.
Systematic risk is the risk that affects the entire market, such as changes in interest rates or economic conditions. It cannot be avoided through diversification.
Total risk is the sum of the systematic and unsystematic risks.