Answered

which of the following is not correct? group of answer choices all of the responses are correct. the part of the risk of a security that can be eliminated by diversifying is its market or systematic risk. the part of the risk of a security that can be eliminated by diversifying is its non-systematic, unique, or firm-specific risk. the more assets in a portfolio, generally, the lower the risk of the portfolio will be.

Answer :

The statement that is not correct is the part of the risk of a security that can be eliminated by diversifying is its market or systematic risk.

Systematic risk is the risk which impacts the performance of the entire market or market segment. It is also known as undiversifiable risk, volatility risk or “market risk, which influences overall market and not just a specific stock or industry. As the risk is inherent to the entire market, it cannot be mitigated by a company diversifying its portfolio. Unsystematic risk or specific risk refers to risks that is unique or specific to a particular company or industry and can be mitigated through diversification. Diversification refers to a strategy that involves including a wide variety of investments within a portfolio to reduce risk.

Learn more about Systematic risk:

https://brainly.com/question/17057496

#SPJ4

Go Question: Other Questions