Sản phẩm & Rủi roCâu 52 / 398
Which type of risk can an investor most effectively reduce through diversification across many different securities?
a.Market (systematic) risk
b.Interest-rate risk
c.Inflation risk
d.Unsystematic (business/specific) risk
Giải thích
Unsystematic risk is specific to a single company or industry and can be greatly reduced by holding a diversified portfolio. Market, interest-rate, and inflation risks are systematic and affect the whole market, so diversification cannot eliminate them.
Luyện miễn phí toàn bộ 398 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- When interest rates fall, an investor who owns a callable bond faces the risk that the bond will be called and the proceeds must be reinvested at lower rates. This combined concern is BEST described as:
- An investor holding fixed-rate bonds during a period of rising inflation is MOST concerned about:
- An investor wants to sell a thinly traded municipal bond quickly but can only do so by accepting a much lower price. This difficulty illustrates:
- Market (systematic) risk is best described as the risk that:
- An investor buys a short-term bond and, when it matures, can only reinvest the proceeds at a lower interest rate than before. This describes:
- Compared with a long-term bond, a short-term bond of the same issuer generally has:
Cập nhật gần nhất: · quy trình kiểm tra
Đội Ngũ Biên Tập PrepPass · Đối chiếu với FINRA Securities Industry Essentials (SIE) Exam · Quy trình kiểm tra