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Generally speaking, which risk does an investor holding a well-diversified portfolio of Canadian equities still face?

1. Specific risk.
2. Business risk.
3. Systematic risk.
4. Market risk.

User Cluny
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1 Answer

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Final answer:

An investor holding a well-diversified portfolio of Canadian equities still faces systematic risk and market risk.

Step-by-step explanation:

An investor holding a well-diversified portfolio of Canadian equities still faces systematic risk and market risk.

Systematic risk, also known as non-diversifiable risk, refers to the risk that affects the entire market or economy, such as interest rate fluctuations or geopolitical events. It cannot be eliminated through diversification.

Market risk is the risk that arises from the overall performance of the stock market. Factors such as economic conditions, market sentiment, and industry trends can impact the value of Canadian equities in a diversified portfolio.

User Fer Trovati
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