When a portfolio is diversified, what type of risk is reduced?Group of answer choicesunsystematic risksystematic risk

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When a portfolio is diversified, what type of risk is reduced?Group of answer choicesunsystematic risksystematic risk
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Solution 1

When a portfolio is diversified, the type of risk that is reduced is unsystematic risk.

Here's why:

  1. Unsystematic risk, also known as specific risk, is the risk associated with a specific company or industry. This risk can be mitigated through diversification, which involves spreading investmen Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

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