Risk that affects all firms is called
A) diversifiable risk.
B) total risk.
C) nondiversifiable risk.
D) management risk.

Question

Quizplus · Accepted Answer

Nondiversifiable risk, also known as systematic risk, affects all firms in the market regardless of their individual characteristics or strategies. This risk is associated with factors such as macroeconomic conditions, geopolitical events, and changes in government regulations, and cannot be eliminated through diversification.

Risk That Affects All Firms Is Called