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Chartered Investment Manager (CIM) Practice Exam · Question

Portfolio diversification reduces:

Specific risk only. The correct answer is "Unsystematic risk". This reflects the accepted standard for the cim assessment and aligns with the official handbook

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Question: Portfolio diversification reduces:

Answer options: ✅ Unsystematic risk

  • Systematic risk
  • Inflation risk
  • All risk

Correct answer: Unsystematic risk

Explanation: Specific risk only. The correct answer is "Unsystematic risk". This reflects the accepted standard for the cim assessment and aligns with the official handbook for this competency.

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