- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 2. Portfolio Risk and Return: Part II
- Subject 2. Systematic Risk and Unsystematic Risk
CFA Practice Question
Which of the following is equivalent to total risk?
B. Market risk plus firm-specific risk
C. Market risk plus non-diversifiable risk
D. Firm-specific risk plus diversifiable risk
E. Systematic risk minus unsystematic risk
A. Diversifiable risk plus unsystematic risk
B. Market risk plus firm-specific risk
C. Market risk plus non-diversifiable risk
D. Firm-specific risk plus diversifiable risk
E. Systematic risk minus unsystematic risk
Correct Answer: B
User Contributed Comments 3
| User | Comment |
|---|---|
| danlan | D; firm-specific risk is diversifiable risk |
| danlan2 | diversifiable=unsystematic=firm specific non diversifiable=systematic=market |
| EEEEvia | since diversifiable risk is equal to unsystematic risk, so why not A? |