Post Utme Igbinedion University 2022 Commerce Question 36

Practice objective / multiple choice question 36 from the 2022 Post Utme Igbinedion University Commerce examination.

Post Utme Igbinedion University 2022 Commerce Objective / Multiple Choice
Question 36 POST_UTME_IGBINEDION_UNIVERSITY • 2022 • COMMERCE • objective

A company's risk management strategy involves diversification of its investments across various asset classes. If the company has a portfolio of stocks, bonds, and real estate, and the returns on these assets are not perfectly correlated, what type of risk is the company most likely to be exposed to?

Answer Options

A. Systematic risk
Correct Answer B. Unsystematic risk
C. Cyclical risk
D. Idiosyncratic risk
Correct Answer
B
Correct Option:
Unsystematic risk

About This Question

This is Post Utme Igbinedion University 2022 Commerce Question 36. It is one of the objective questions from the 2022 Post Utme Igbinedion University Commerce examination.

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