Basic concepts $-$ Risk

Select the term that corresponds to each of the given descriptions. $($Note: There is only one possible answer for each description.$)$

Descriptions Terms

The result of adding additional assets to a portfolio, when the returns of the individual assets are non$-$correlated.

A measure of the extent to which the returns on a given investment are correlated with the returns of a market portfolio.

The potential for variability in the possible outcomes associated with an investment.

That portion of an investment$$s risk calculated as the difference between its total risk and its firm$-$specific risk.

A model that calculates the required return on an asset as the sum of the market$$s risk$-$free rate and the asset$$s nondiversifiable risk.