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The risk and retum on a particular mutual fund can be affected by both economic factors and the default and financial risks associated with the

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The risk and retum on a particular mutual fund can be affected by both economic factors and the default and financial risks associated with the underlying securities. What statement regarding unsystematic risk is true? a) Unsystematic risk is the risk associated primarily with infiation, interest rates and other economic factors. b) Unsystematic risk can be minimized by constructing a well-diversified portfolio. c) Default and financial risk are not unsystematic risks. d) Investors in corporate debt obligations are exposed to interest rate risk, not default risk

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