Total risk equals _________________.

A) market risk plus firm-specific risk,
B) firm-specific risk plus diversifiable risk,
C) systematic risk minus unsystematic risk,
D) diversifiable risk plus unsystematic risk,
E) market risk plus non-diversifiable risk,

Total Risk

The overall risk associated with an investment, including both systematic and unsystematic risks.

Market Risk

The potential for a loss faced by an investor, which is attributed to elements that influence the total performance of the financial markets.

Firm-specific Risk

The portion of a company's risk that is attributable to its own operations and environment, as opposed to market-wide risk.