n NISM Certifications
X NISM Series X
Medium

NOT a characteristic of unsystematic risk?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Diversifiable

  2. B

    Sector-specific

  3. C

    Should be zero in a portfolio

  4. Unavoidable

    Correct answer

Why this is the answer

Unsystematic risk is avoidable via diversification; it is not unavoidable.

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