Inflation, recession, and high interest rates are economic events that are best characterized as being what?
A) systematic risk factors that can be diversified away
B) company-specific risk factors that can be diversified away
C) among the factors that are responsible for market risk
D) risks that are beyond the control of investors and thus should not be considered by security analysts or portfolio managers

Question

Quizplus · Accepted Answer

Inflation, recession, and high interest rates are macroeconomic factors that impact the entire market or economy as a whole, making them market risk factors. They cannot be diversified away by individual investors or companies.

Inflation, Recession, and High Interest Rates Are Economic Events That