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Non-systematic risk is also known as_____________.
Answer & Solution
Correct Answer:
Option
D
Non-systematic risk is also known as company-specific risk. Specific risk is a risk that affects a minimal number of assets. Specific risk, as its name implies, relates to risks that are very specific to a company or small group of companies. This type of risk is the opposite of overall market risk or systematic risk. Specific risk is also referred to as “unsystematic risk” or “diversifiable risk.”
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