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Options
- A
Risk specific to a company
-
Risk that affects the entire market
Correct answer
- C
Risk arising from managerial decisions
- D
Risk that can be eliminated by diversification
Why this is the answer
Systematic risk, also called market risk, affects all companies due to factors like inflation, interest rates, or political events. It cannot be eliminated by diversification, unlike unsystematic risk which is company-specific.
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