Risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as

A stock risk
B portfolio risk
C diversifiable risk
D market risk

Correct Answer: diversifiable risk

Risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as diversifiable risk. Diversifiable risk is the possibility that there will be a change in the price of a security because of the specific characteristics of that security.
Bissoy MCQ
#Commerce #Financial Management

Related Questions

Risk on a stock portfolio which cannot be eliminated or reduced by placing it in diversified portfolio is classified as
A diversifiable risk
B market risk
C stock risk
D portfolio risk
A risk which is classified as its contribution to risk of portfolio is classified as
A classified risk
B contributed risk
C irrelevant risk
D relevant risk
The Head of a newly formed government desires to appoint five of the six elected members A,B,C,D,E and F to portfolios of Home,Power,Defence ,Telecom and Finance.F dose not want any portfolio if D gets one the five.C wants either Home or Finance or on portfolio.B says that if D gets either Power or Telecom then she must get the other one.E insists on a portfolio if A gets one. Which is a valid assignment ?
A B-Home, F-Power,E-Defence,C-Telecom ,A-Finance
B A-Home, B-Power,E-Defence,D-Telecom ,F-Finance
C C-Home, D-Power,A-Defence,B-Telecom ,E-Finance
D A-Home, B-Power,C-Defence,D-Telecom ,E-Finance
The Head of a newly formed government desires to appoint five of the six elected members A,B,C,D,E and F to portfolios of Home,Power,Defence ,Telecom and Finance.F dose not want any portfolio if D gets one the five.C wants either Home or Finance or on portfolio.B says that if D gets either Power or Telecom then she must get the other one.E insists on a portfolio if A gets one. If a gets Home and C gets Finance,then which is NOT a valid assignment for Defence and Telecom?
A B-Defence,D-Telecom
B B-Defence,E-Telecom
C F-Defence,B-Telecom
D D-Defence,B-Telecom
Sum of market risk and diversifiable risk are classified as total risk which is equivalent to
A Sharpe's alpha
B standard alphas
C alpha's variance
D variance
Which of the following has helped to eliminate the use of stock certificates by placing stock transactions on computers?
A Demat account
B Securities Exchange Commission
C Depository Trust Company
D Federal Depository Insurance Corporation.
An investor who writes stock call options in his own portfolio is classified as
A due option
B covered option
C undue option
D uncovered option
A group of 20 friends formed and investment club, with each member contributing an equal amount to the general fund. The club then invested the entire fund, which amounted to t taka, in stock X. The value of the stock subsequently increased 40 percent, at that point the stock was sold and the proceeds divided evenly among the members. In terms of t, how much money did each member of the club receive from the sale?
A 800t
B t2
C 7t5
D 7t100
Mr. Tanvir purchased stock for Tk. 1,500 and sold 2/3 of it after its value doubled. He sold the remaining stock at 5 times its purchase price. What was his total profit on the stock?
A Tk. 2000
B Tk. 2500
C Tk. 3000
D Tk. 4500
of the 300 economists: 75% invested in stock market, 40% invested in bond market and 15% invested neither stock nor bond. How many of them invested only " in stock market?
A 162
B 108
C 216
D 270

Next steps