Science › Definitions › Question #10908
Single Choice Easy

QWhich term refers to the risk associated with investing in a particular company or industry rather than the overall market?

ID: #10908 Definitions 114 views
Question Info
#10908Q ID
EasyDifficulty
DefinitionsTopic
Start Quiz on This Topic
 Your Answer

Choose the Best Option

Click any option to instantly check if you're correct.

  • A Systematic risk ✔ ✖
  • B Unsystematic risk ✔ ✖
  • C Market risk ✔ ✖
  • D Credit risk ✔ ✖
Correct Answer

Explanation

Unsystematic risk, also known as specific risk or idiosyncratic risk, refers to the risk associated with investing in a particular company or industry rather than the overall market. It can be reduced through diversification as it is company or industry-specific and can be mitigated by spreading investments across different assets.

 Continue Practice
Previous Question Next Question
 Share

Share This Question

Challenge a friend or share with your study group.

 More from This Topic

Related MCQ Questions

Study of the environment is called... Study of animal is called... Study of properties of matter and energy is called... The science of knowledge or wisdom is called... Study of properties of substances is called... Study of surface of the earth and its inhabitants are called... Study of life is called... Study of the universe is called... Study of human material remains called... What is the term for a formal written agreement between two or more countries or organizations that outlines their mutual goals and responsibilities?...