Systematic risks are defined as:
A) The unique risks inherent to a particular industry or firm.
B) Unexpected events which affect the price of a limited number of securities.
C) Risks which are eliminated in a diversified portfolio.
D) Unexpected events which affect almost all assets.
E) Risks which go unrewarded by the marketplace.

Question

Quizplus · Accepted Answer

Systematic risks refer to the overall market risks that affect nearly all assets to some degree. These are risks that cannot be diversified away and are linked to broader economic, political, or social factors. Examples include inflation, interest rate changes, and recessions.

Systematic Risks Are Defined As