Systematic risk is defined as:
A) a risk that specifically affects an asset or small group of assets.
B) any risk that affects a large number of assets.
C) any risk that has a huge impact on the return of a security.
D) the random component of return.

Question

Quizplus · Accepted Answer

Systematic risk refers to the risk that affects a large number of assets, often caused by factors like economic changes, political events, or natural disasters that impact the entire market or a significant portion of it.

Systematic Risk Is Defined As