Answer: Systematic risk can be eliminated by holding securities in a well-diversified international stock portfolio.

## Explanation Let's analyze each statement: **A. Not all risk is diversifiable.** - This is **accurate**. Total risk consists of systematic risk (market risk) and unsystematic risk (specific risk). Systematic risk cannot be diversified away. **B. Unsystematic risk can be substantially reduced by diversification.** - This is **accurate**. Unsystematic risk, also known as specific risk or idiosyncratic risk, can be significantly reduced through proper diversification across different securities and industries. **C. Systematic risk can be eliminated by holding securities in a well-diversified international stock portfolio.** - This is **least accurate**. Systematic risk (market risk) affects all securities in the market and cannot be eliminated through diversification, even with international diversification. International diversification can reduce country-specific risks but cannot eliminate global systematic risk factors. **D. None of above.** - This is incorrect since option C is inaccurate. Therefore, option C is the least accurate statement because systematic risk cannot be eliminated through diversification, regardless of how well-diversified the portfolio is.

Author: LeetQuiz .