{"id":44731,"date":"2024-04-15T21:47:53","date_gmt":"2024-04-15T21:47:53","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=44731"},"modified":"2024-04-15T21:47:53","modified_gmt":"2024-04-15T21:47:53","slug":"risk-on-a-stock-portfolio-which-can-be-reduced-by-placing-it-in-diversified-portfolio-is-classified-as","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/risk-on-a-stock-portfolio-which-can-be-reduced-by-placing-it-in-diversified-portfolio-is-classified-as\/","title":{"rendered":"Risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;stock risk&#8221; option2=&#8221;portfolio risk&#8221; option3=&#8221;diversifiable risk&#8221; option4=&#8221;market risk&#8221; correct=&#8221;option3&#8243;]<!--more--><\/p>\n<p>The correct answer is C. diversifiable risk.<\/p>\n<p>Diversifiable risk is the risk that can be reduced by holding a diversified portfolio of assets. This type of risk is caused by factors that are specific to individual companies or industries, such as management decisions, product failures, and changes in government regulations. By holding a portfolio of assets that are not perfectly correlated, investors can reduce their exposure to diversifiable risk.<\/p>\n<p>Stock risk is the risk that an individual stock will underperform the market. This type of risk is caused by factors that are specific to the company, such as its financial health, its industry, and its management team. Investors can reduce their exposure to stock risk by diversifying their portfolio across different stocks and industries.<\/p>\n<p>Portfolio risk is the overall risk of a portfolio of assets. This type of risk is a combination of diversifiable risk and market risk. Market risk is the risk that the entire market will decline in value. This type of risk cannot be reduced by diversification, as all assets in the market are affected by the same factors, such as economic conditions and interest rates.<\/p>\n<p>Therefore, the correct answer is C. diversifiable risk.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;stock risk&#8221; option2=&#8221;portfolio risk&#8221; option3=&#8221;diversifiable risk&#8221; option4=&#8221;market risk&#8221; correct=&#8221;option3&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-44731","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/risk-on-a-stock-portfolio-which-can-be-reduced-by-placing-it-in-diversified-portfolio-is-classified-as\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;stock risk&#8221; option2=&#8221;portfolio risk&#8221; option3=&#8221;diversifiable risk&#8221; option4=&#8221;market risk&#8221; correct=&#8221;option3&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/risk-on-a-stock-portfolio-which-can-be-reduced-by-placing-it-in-diversified-portfolio-is-classified-as\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T21:47:53+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/risk-on-a-stock-portfolio-which-can-be-reduced-by-placing-it-in-diversified-portfolio-is-classified-as\/","og_locale":"en_US","og_type":"article","og_title":"Risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as","og_description":"[amp_mcq option1=&#8221;stock risk&#8221; option2=&#8221;portfolio risk&#8221; option3=&#8221;diversifiable risk&#8221; option4=&#8221;market risk&#8221; correct=&#8221;option3&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/risk-on-a-stock-portfolio-which-can-be-reduced-by-placing-it-in-diversified-portfolio-is-classified-as\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T21:47:53+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/risk-on-a-stock-portfolio-which-can-be-reduced-by-placing-it-in-diversified-portfolio-is-classified-as\/","url":"https:\/\/exam.pscnotes.com\/mcq\/risk-on-a-stock-portfolio-which-can-be-reduced-by-placing-it-in-diversified-portfolio-is-classified-as\/","name":"Risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-15T21:47:53+00:00","dateModified":"2024-04-15T21:47:53+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/risk-on-a-stock-portfolio-which-can-be-reduced-by-placing-it-in-diversified-portfolio-is-classified-as\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/risk-on-a-stock-portfolio-which-can-be-reduced-by-placing-it-in-diversified-portfolio-is-classified-as\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/risk-on-a-stock-portfolio-which-can-be-reduced-by-placing-it-in-diversified-portfolio-is-classified-as\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"Financial management","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/financial-management\/"},{"@type":"ListItem","position":3,"name":"Risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/44731","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=44731"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/44731\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=44731"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=44731"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=44731"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}