the risk associated with movements in security prices
reduced through diversification
higher when interest rates rise
the risk of loss of purchasing power
✅ The correct answer is B.
Unsystematic risk is reduced through diversification. Unsystematic risk is the risk that is inherent in a specific company or industry. By investing in a range of companies and industries, unsystematic risk can be drastically reduced through diversification.
Unsystematic risk is reduced through diversification. Unsystematic risk is the risk that is inherent in a specific company or industry. By investing in a range of companies and industries, unsystematic risk can be drastically reduced through diversification.