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Risk on a stock portfolio which cannot be eliminated or reduced...

This question belongs to Commerce Financial Management
Financial Management
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Risk on a stock portfolio which cannot be eliminated or reduced by placing it in diversified portfolio is classified as

Answer & Solution
Correct Answer: Option B
Risk on a stock portfolio which cannot be eliminated or reduced by placing it in diversified portfolio is classified as market risk. Market risk is the possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets in which he or she is involved.
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