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This type of risk is avoidable through proper diversification

This question belongs to Commerce Financial Management
Financial Management
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This type of risk is avoidable through proper diversification.

Answer & Solution
Correct Answer: Option C
Unsystematic type of risk is avoidable through proper diversification. Unsystematic risk, also known as specific risk or idiosyncratic risk, is a category of risk that only affects an industry or a particular company. Unsystematic risk is the risk of losing an investment due to company or industry-specific hazard.
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