Risk that cannot be eliminated through diversification is


1. Risk that cannot be eliminated through diversification is called ______ risk

A) Unique risk

B) Systematic

C) Diversifiable

D) Asset- specific risk

E) None of these options

2. You put 90% of your money in a stock portfolio that has an expected return of 11% and a standard deviation of 24% You put rest of your money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 12% the stock and bond portfolios have a correlation of .12 what is the expected return for the resulting portfolio?

A) 10%

B) 10.5%

C) 11%

D) 11.5%

E) 12%

3. You put 90% of your money in a stock portfolio that has an expected return of 11% and a standard deviation of 24% You put rest of your money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 12% the stock and bond portfolios have a correlation of .12 what is the standard deviation of the resulting portfolio?

A) 12%

B) 20%

c) 22%

D) 24%

E) 30%

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Financial Management: Risk that cannot be eliminated through diversification is
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