Quiz on lesson ” Picking Stocks | Common Sense Investing “

1. What is systematic risk?

a) A type of risk that can be diversified away

b) A risk that cannot be diversified away

c) A risk that is compensated

2. What is non-systematic risk?

a) A risk that can be easily diversified away

b) A risk that cannot be diversified away

c) A risk that is compensated

3. What is the common reason for people to own individual stocks?

a) To overcome their biases

b) To speculate on the stock market

c) To receive equity packages from their employer

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