Examveda
Examveda

Risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as

A. stock risk

B. portfolio risk

C. diversifiable risk

D. market risk

Answer: Option C

Solution(By Examveda Team)

Risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as diversifiable risk. Diversifiable risk is the possibility that there will be a change in the price of a security because of the specific characteristics of that security.

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