Asked by
Oluwatosin Taiwo
on Nov 07, 2024
Verified
Non-diversifiable risk is relevant to a well-diversified investor.
Non-diversifiable Risk
A type of risk that is inherent to the entire market or market segment and cannot be eliminated through diversification.
Diversified Investor
An investor who spreads their investment across various assets to minimize risk.
- Master the distinction between systematic and unsystematic risks.
- Apprehend the impact distinct risk forms have on the financial returns and pricing of assets.
Verified Answer
HK
Learning Objectives
- Master the distinction between systematic and unsystematic risks.
- Apprehend the impact distinct risk forms have on the financial returns and pricing of assets.