Asked by
Jaxson Schoening
on Nov 07, 2024
Verified
Spreading the retail industry portion of a portfolio over five separate stocks helps reduce unsystematic risk in a portfolio.
Unsystematic Risk
The risk associated with a particular company or industry, also known as idiosyncratic risk or specific risk.
Retail Industry
The sector of the economy that sells consumer goods directly to customers.
- Examine the effects of spreading investments across various asset classes on mitigating financial risk.
Verified Answer
SM
Learning Objectives
- Examine the effects of spreading investments across various asset classes on mitigating financial risk.
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