In a well-diversified portfolio, ________ risk is negligible.

A) nondiversifiable
B) market
C) systematic
D) unsystematic

Well-diversified Portfolio

An investment portfolio that spreads risk by holding a wide variety of assets, potentially across different asset classes, sectors, and geographies.

Unsystematic Risk

Refers to the risk associated with specific entities, such as companies or industries, that can be mitigated through diversification.