Market risk is also called
A)systematic risk.
B)undiversifiable risk.
C)firm-specific risk.
D)systematic risk and undiversifiable risk.

Question

Quizplus · Accepted Answer

Market risk is also known as systematic risk or undiversifiable risk because it affects the overall market and cannot be eliminated through diversification. It is the risk of adverse price movements due to factors such as economic, political, or global events that affect the market as a whole. Therefore, both options (systematic risk and undiversifiable risk) are correct.

Market Risk Is Also Called