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Basic Question 0 of 8
The portion of risk that can be eliminated by diversification is called ______.
B. market risk
C. default risk
A. unique risk
B. market risk
C. default risk
User Contributed Comments 11
| User | Comment |
|---|---|
| mtcfa | Shouldn't the answer be B? |
| danlan | Market risk is always there, unique risk can be eliminated. |
| Rotigga | Unique risk is the risk related to a specific asset. |
| ljamieson | Unique risk <=> Asset specific risk I assume |
| Crown01 | Unique risk = unsystematic risk also. |
| Crown01 | or we can can call unique risk as diversifiable risk |
| BigJimStud | think of it this way, how can you ever diversify away market risk when by the very nature of investing you are in the market to begin with? |
| thekobe | market risk= systematic risk unique risk = unsystematic risk |
| gulfa99 | unsystematic risk = unique risk systematic risk = non unique risk refer to notes |
| davcer | market=systematic=non unique=nos diversifiable |
| maryprz14 | You can't diversify away the system risk because by investing in the market, you are in the system. haha... sounds like a serious boring quote :D |
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Learning Outcome Statements
describe supervised machine learning algorithms - including penalized regression, support vector machine, k-nearest neighbor, classification and regression tree, ensemble learning, and random forest - and determine the problems for which they are best suited;
CFA® 2025 Level II Curriculum, Volume 1, Module 6.