In finance, an asset is risky if its future payments are uncertain. What matters is not whether
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In finance, an asset is risky if its future payments are uncertain.
What matters is not whether the payments are big or small, positive or negative, or good or bad—only that they are not guaranteed ahead of time. Risks that can be canceled out by diversification are called diversifiable risks. Risks that cannot be canceled out by diversification are called nondiversifiable risks.
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Economics Principles Problems And Policies
ISBN: 9780073511443
19th Edition
Authors: Campbell Mcconnell ,Stanley Brue ,Sean Flynn
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