Start learning →

Because firm-specific risk can be diversified away, the risk that actually matters to investors is:

AWeather risk
BSystematic risk
CStorage risk
DPostage risk
Answer & Solution
Correct answer: B. Systematic risk
1. Diversification cannot remove it. 2. It hits the whole market. 3. It is systematic risk. _Source: OpenStax Principles of Finance 2e, Chapter 15, How to Think about Investing._
Practise this question with Quill — Canadian Securities Course (CSC) →

Keep practising Risk and Return

Browse all Risk and Return questions for Canadian Securities Course (CSC), or explore more Investments topics.

Start a Risk and Return lesson →
Related questions
Risk and return bingoType the numberSort the investing wordsDiversifiable or notSlice the investing wordsRun the investing gatesPop the risk wordsCatch the return measures