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Investors are exposed to a variety of risks when investing in securities. Some of the risks are associated with economic events that can be linked
Investors are exposed to a variety of risks when investing in securities. Some of the risks are associated with economic events that can be linked to risk and return. How best these can be best characterized?
a) company specific risks because they can be eliminated through diversification. |
b) company specific risks because they cannot be eliminated through diversification. |
c) market risk that investors cannot eliminate even in a well-diversified portfolio. |
d) market risk that rational investors can easily eliminate through diligence and diversification. |
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