1. Stand-Alone Risk
None of the above.
The risk that remains in a portfolio after diversification has eliminated all of the company-specific risk.
Inflation, recession, and high interest rates are economic events are all examples of this type of risk.
The risk that an investor faces if she or she has only one asset.
The risk that can be eliminated by proper diversification.
2. Which of the following is an example of idiosyncratic risk?
Fire in National Forest
None of these
Increase in Interest Rates
Change in the Federal Tax code
Inflation