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Examveda

Unsystematic risk is______.

A. the risk associated with movements in security prices

B. reduced through diversification

C. higher when interest rates rise

D. the risk of loss of purchasing power

Answer: Option B

Solution(By Examveda Team)

Unsystematic risk is reduced through diversification. Unsystematic risk is the risk that is inherent in a specific company or industry. By investing in a range of companies and industries, unsystematic risk can be drastically reduced through diversification.

This Question Belongs to Commerce >> Financial Management

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