{"id":54427,"date":"2024-04-16T00:09:59","date_gmt":"2024-04-16T00:09:59","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=54427"},"modified":"2024-04-16T00:09:59","modified_gmt":"2024-04-16T00:09:59","slug":"an-unsystematic-risk-which-can-be-eliminated-but-market-risk-is-the","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/an-unsystematic-risk-which-can-be-eliminated-but-market-risk-is-the\/","title":{"rendered":"An unsystematic risk which can be eliminated but market risk is the"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;aggregate risk&#8221; option2=&#8221;remaining risk&#8221; option3=&#8221;effective risk&#8221; option4=&#8221;ineffective risk&#8221; correct=&#8221;option1&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>A. aggregate risk<\/strong><\/p>\n<p>Aggregate risk is the total risk of a portfolio, which is the sum of the systematic risk and the unsystematic risk. Systematic risk is the risk that cannot be diversified away, and unsystematic risk is the risk that can be diversified away.<\/p>\n<p>The remaining risk, effective risk, and ineffective risk are all terms that are not commonly used in finance. The remaining risk is the risk that remains after diversification, which is the unsystematic risk. The effective risk is the risk that is actually faced by investors, which is the sum of the systematic risk and the unsystematic risk. The ineffective risk is the risk that is not actually faced by investors, which is the unsystematic risk.<\/p>\n<p>Here is a more detailed explanation of each option:<\/p>\n<ul>\n<li><strong>Aggregate risk<\/strong> is the total risk of a portfolio, which is the sum of the systematic risk and the unsystematic risk. Systematic risk is the risk that cannot be diversified away, and unsystematic risk is the risk that can be diversified away.<\/li>\n<li><strong>Remaining risk<\/strong> is the risk that remains after diversification, which is the unsystematic risk.<\/li>\n<li><strong>Effective risk<\/strong> is the risk that is actually faced by investors, which is the sum of the systematic risk and the unsystematic risk.<\/li>\n<li><strong>Ineffective risk<\/strong> is the risk that is not actually faced by investors, which is the unsystematic risk.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;aggregate risk&#8221; option2=&#8221;remaining risk&#8221; option3=&#8221;effective risk&#8221; option4=&#8221;ineffective risk&#8221; correct=&#8221;option1&#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-54427","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>An unsystematic risk which can be eliminated but market risk is the<\/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\/an-unsystematic-risk-which-can-be-eliminated-but-market-risk-is-the\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"An unsystematic risk which can be eliminated but market risk is the\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;aggregate risk&#8221; option2=&#8221;remaining risk&#8221; option3=&#8221;effective risk&#8221; option4=&#8221;ineffective risk&#8221; correct=&#8221;option1&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/an-unsystematic-risk-which-can-be-eliminated-but-market-risk-is-the\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-16T00:09:59+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":"An unsystematic risk which can be eliminated but market risk is the","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\/an-unsystematic-risk-which-can-be-eliminated-but-market-risk-is-the\/","og_locale":"en_US","og_type":"article","og_title":"An unsystematic risk which can be eliminated but market risk is the","og_description":"[amp_mcq option1=&#8221;aggregate risk&#8221; option2=&#8221;remaining risk&#8221; option3=&#8221;effective risk&#8221; option4=&#8221;ineffective risk&#8221; correct=&#8221;option1&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/an-unsystematic-risk-which-can-be-eliminated-but-market-risk-is-the\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-16T00:09:59+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\/an-unsystematic-risk-which-can-be-eliminated-but-market-risk-is-the\/","url":"https:\/\/exam.pscnotes.com\/mcq\/an-unsystematic-risk-which-can-be-eliminated-but-market-risk-is-the\/","name":"An unsystematic risk which can be eliminated but market risk is the","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-16T00:09:59+00:00","dateModified":"2024-04-16T00:09:59+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/an-unsystematic-risk-which-can-be-eliminated-but-market-risk-is-the\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/an-unsystematic-risk-which-can-be-eliminated-but-market-risk-is-the\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/an-unsystematic-risk-which-can-be-eliminated-but-market-risk-is-the\/#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":"An unsystematic risk which can be eliminated but market risk is the"}]},{"@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\/54427","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=54427"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/54427\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=54427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=54427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=54427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}