Which type of risk can be diversified away? Systematic risk. Market risk. Inflation risk. Idiosyncratic risk....

Which type of risk can be diversified away? Systematic risk. Market risk. Inflation risk. Idiosyncratic risk. More than one of the these types of risk can be diversified away.

Expert Solution

Which type of risk can be diversified away?

Ans: Idiosyncratic risk

Other risk like systematic risk, market risk and inflation risk can't be diversified whereas Idiosyncratic risk can be diversified, Idiosyncratic risk is also known as unsystematic risk.

jeff jeffy answered 2 years ago

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