Deal of The Day! Hurry Up, Grab the Special Discount - Save 25% - Ends In 00:00:00 Coupon code: SAVE25
Welcome to Pass4Success

- Free Preparation Discussions

CSI IFC Exam - Topic 1 Question 14 Discussion

What risk type is prevalent regardless of the level of portfolio diversification or hedging?
A) Market
B) Default
C) Unique
D) Inflation

CSI IFC Exam - Topic 1 Question 14 Discussion

Actual exam question for CSI's IFC exam
Question #: 14
Topic #: 1
[All IFC Questions]

What risk type is prevalent regardless of the level of portfolio diversification or hedging?

Show Suggested Answer Hide Answer
Suggested Answer: A

Market risk (systematic risk) cannot be eliminated by diversification or hedging; it affects all securities in the market (e.g., recessions, geopolitical events, interest rate changes).

Default risk (B) relates to specific issuers of debt.

Unique risk (C) is company-specific and can be diversified away.


Contribute your Thoughts:

0/2000 characters

Currently there are no comments in this discussion, be the first to comment!


Save Cancel