The inclusion of thirty highly diverse securities in a portfolio eliminates the bulk of the ___ risk.

A) Market.
B) Unique.
C) Unexpected.
D) Expected.
E) Inflation.

Unique Risk

Also known as unsystematic risk, it refers to the risk associated with a specific company or industry that can be mitigated through diversification.

Market Risk

The risk of losses in investments due to factors that affect the overall performance of the financial markets.

Inflation Risk

The danger that the value of financial returns or purchasing power will be eroded as inflation diminishes the value of money over time.