Which among the following statements are true about unsystematic risk ........

Finance (RBI) Financial System

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Which among the following statements are true about unsystematic risk?

It is diversifiable

It is company specific

Both a and b

a only

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Explanation:

Unsystematic risk is unique to a given business or industry. It is also known as specific risk, nonsystematic risk, residual risk, or diversifiable risk.

Unsystematic risk is caused due to internal factors; it can be avoided and controlled. Unsystematic risk can be minimized by diversification in the sense of an investment portfolio.