Market risk is also called unsystematic risk

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Reference no: EM131504829

All of the following statements are false. Please change the incorrect parts to make them true. DO NOT negate the sentence, unless necessary.

1. Market risk is also called unsystematic risk or diversifiable risk.

2. Firm-specific risk is also called systematic risk or undiversifiable risk.

3. Rational risk-averse investors will always prefer portfolios located on the efficient frontier to those located on the capital market line.

4. The market portfolio can be identified by the tangency point of the efficient frontier and the investors’ utility indifference curve.

Reference no: EM131504829

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