_______ risk and _______ risk are decreased, although not completely filtered, w
ID: 2613387 • Letter: #
Question
_______ risk and _______ risk are decreased, although not completely filtered, whenever we form asset price benchmarks. ________ risk, on the other hand, is not decreased (in fact, that is the whole reason we create benchmarks!).a. System-Wide, Total, Systematic b. Systematic, Idiosyncratic, Total c. Total, Systematic, Idiosyncratic d. Total, Idiosyncratic, Systematic _______ risk and _______ risk are decreased, although not completely filtered, whenever we form asset price benchmarks. ________ risk, on the other hand, is not decreased (in fact, that is the whole reason we create benchmarks!).
a. System-Wide, Total, Systematic b. Systematic, Idiosyncratic, Total c. Total, Systematic, Idiosyncratic d. Total, Idiosyncratic, Systematic _______ risk and _______ risk are decreased, although not completely filtered, whenever we form asset price benchmarks. ________ risk, on the other hand, is not decreased (in fact, that is the whole reason we create benchmarks!).
a. System-Wide, Total, Systematic b. Systematic, Idiosyncratic, Total c. Total, Systematic, Idiosyncratic d. Total, Idiosyncratic, Systematic
Explanation / Answer
_______ risk and _______ risk are decreased, although not completely filtered, whenever we form asset price benchmarks. ________ risk, on the other hand, is not decreased (in fact, that is the whole reason we create benchmarks!).
a. System-Wide, Total, Systematic
Note : System wide & total risk incorporate unsystematic risk which can be removed by diversification of portfolio or by portfolio management Whereas Systematic Risk are those risk which are not be decrease through any activity as it is dependent to the market, economic condition, rules & regulation.
Idiosyncratic risk are also an unpredictable risk which happens through uncertain events, So we can reduce our System-Wide, Total risk by forming asset price benchmarks, where portfolio management is being done
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