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Systemic risk can be diversified a. True. b. False c. Partly true d. partly false.

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Question added by Vinod Jetley , Assistant General Manager , State Bank of India
Date Posted: 2014/10/03
Malik Khalid Mahmood
by Malik Khalid Mahmood , Regional Finance Manager , Leosons International FZ LLC

no, systematic risk is non controlable, only non systematic risk can be diversified by changing the portfolio of investment

Divyesh Patel
by Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

Option B

georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

You can not avoid the risk of public diversification. The correct answer Answer b

ahmed alyahiri
by ahmed alyahiri , محامي حر , مكتب المحامي عبدالرحمن الأهدل

false

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

b. False

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Statement is False.

Market-wide systematic risk cannot be significantly reduced by diversification.

Alex Al Yazouri
by Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

Uncontrollable

b. False

Howard Mapfoche
by Howard Mapfoche , Accountant (Post Graduate Trainee) , Powertel Communications (Private) Limited

Systematic risk which is sometimes referred to as undiversifiable risk or market risk can not be diversified away. This risk affects the whole market for example recession. However one can partially mitigate the systematic risk to some lower level but not completely mitigate by diversifying the portfolio and the negative impact would be less. For example, investing in assets with a negative correlation in one portfolio

Saiful Islam Hiron
by Saiful Islam Hiron , Site HR Manager , Handicap International

B. FALSE....................

RAJ DAHIYA
by RAJ DAHIYA , Senior MEP Projects Manager , Trinity Engineering Services L.L.C.

It relates to "B", False Statement !!

P A Cariappa Appaiah
by P A Cariappa Appaiah , back office executive , Inspire Hond

Option " B", False, it can not be diversified.

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