Seeing is believing!
Before you order, simply sign up for a free user account and in seconds you'll be experiencing the best in CFA exam preparation.
Basic Question 4 of 8
Which of the following is equivalent to total risk?
B. Market risk plus firm-specific risk
C. Market risk plus non-diversifiable risk
D. Firm-specific risk plus diversifiable risk
E. Systematic risk minus unsystematic risk
A. Diversifiable risk plus unsystematic risk
B. Market risk plus firm-specific risk
C. Market risk plus non-diversifiable risk
D. Firm-specific risk plus diversifiable risk
E. Systematic risk minus unsystematic risk
User Contributed Comments 3
| User | Comment |
|---|---|
| danlan | D; firm-specific risk is diversifiable risk |
| danlan2 | diversifiable=unsystematic=firm specific non diversifiable=systematic=market |
| EEEEvia | since diversifiable risk is equal to unsystematic risk, so why not A? |
Your review questions and global ranking system were so helpful.
Lina
Learning Outcome Statements
explain systematic and nonsystematic risk, including why an investor should not expect to receive additional return for bearing nonsystematic risk
CFA® 2024 Level I Curriculum, Volume 2, Module 2.