q3-Which of the following statements is TRUE?Select one:a.Unsystematic risk is also known as undiversifiable risk.b.Unsystematic risk is also known as common risk.c.Unsystematic risk is also known as independent risk.d.Unsystematic risk is also known as market risk

Explanation : In simple words, Unsystematic risk refers to an uncertainty that is peculiar to a…

Answered: 3- Which of the following statements…

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3- Which of the following statements is TRUE? Select one: a. Unsystematic risk is also kn

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 10MC

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Concept explainers

Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.

Question

q3-

Which of the following statements is TRUE?

Select one:

Unsystematic risk is also known as undiversifiable risk.

Unsystematic risk is also known as common risk.

Unsystematic risk is also known as independent risk.

Unsystematic risk is also known as market risk

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