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Risk on a stock portfolio which cannot be eliminated or reduced by placing it in diversified portfolio is classified as

Risk on a stock portfolio which cannot be eliminated or reduced by placing it in diversified portfolio is classified as Correct Answer market risk

Risk on a stock portfolio which cannot be eliminated or reduced by placing it in diversified portfolio is classified as market risk. Market risk is the possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets in which he or she is involved.

Related Questions

Choose the correct code for the following statements being correct or incorrect. Statement I : When the two securities returns are perfectly positively correlated, the risk of their portfolio is just a weighted average of the individual risks of the securities. In such case, diversification does not provide risk reduction but only risk averaging. Statement II : Total risk of a portfolio of two risk securities can be completely eliminated when their returns are perfectly negatively correlated and their proportionate holdings in the portfolio are inversely related to the relative individual risks of the securities. 
Risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as
A university library budget committee must reduce exactly five of eight areas of expenditure - I, J, K. L, M, N, O and P - in accordance with the following conditions: If both I and O are reduced, P is also reduced. If L is reduced, neither N nor O is reduced. If M is reduced, J is not reduced. Of the three areas J, K and N exactly two are reduced. If both K and N are reduced, which one of the following is a pair of areas neither of which could be reduced?
A university library budget committee must reduce exactly five of eight areas of expenditure—I, J, K, L, M, N, O and P—in accordance with the following conditions: If both I and O are reduced, P is also reduced.
If L is reduced, neither N nor O is reduced.
If M is reduced, J is not reduced.
Of the three areas J, K, and N exactly two are reduced. Question : If both K and N are reduced, which one of the following is a pair of areas neither of which could be reduced?
Arrange the steps for building a portfolio for your teaching area from beginning to last step order  (A) Decide who will plan the portfolio  (B) Decide on the purpose of a portfolio  (C) Decide which products and how many samples to put in the portfolio  (D) Identify cognitive skills and dispositions  (E) Build the portfolio rubrics  Choose the correct answer from the options given below : 
Stock with large amount of contribution of risk in a diversified portfolio is represented by
Why a retail investor is recommended to invest through a mutual fund in a stock exchange?
1. Mutual funds invest funds in a diversified portfolio of securities, thus reducing the risk of the investor.
2. Mutual funds are managed by financial experts.
3. Mutual funds promise high returns to the investors of the fund.
Risk in average individual stock can be reduced by placing an individual stock in
A risk which is classified as its contribution to risk of portfolio is classified as
Only diversified company with a balanced portfolio can use its strengths to truly capitalise on its growth opportunities. Hence, the balanced portfolio contains