Non-diversiﬁable risks are those risks you cannot avoid if you are invested in the ﬁnancial markets.

Name: Non-diversiﬁable risks are those risks you cannot avoid if you are invested in the ﬁnancial markets.
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Question

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Non-diversifiable risks, also known as systematic risks, are inherent to the entire market and cannot be eliminated through diversification. Examples include market crashes, changes in interest rates, and natural disasters. As such, all investors are exposed to them to some degree.

Non-Diversiﬁable Risks Are Those Risks You Cannot Avoid If You