Unsystematic risk-what is the benefit of diversification

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Reference no: EM131894288

1 Unsystematic risk:

I. is also called unique risk.

II. is also called asset-specific risk.

III. affects a limited number of assets.

IV. affects a large number of assets.

A. I, II, and III only

B. II and IV only

C. I and IV only

D. I, II, and IV only

E. I and III only

2. What is the benefit of diversification? What is the general condition under which diversification will have benefits? Briefly explain why.

Reference no: EM131894288

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