Systematic risk:
A) is the risk eliminated through diversification.
B) represents the risk affecting a specific company.
C) cannot be eliminated through diversification.
D) is another name for risk unique to an individual asset.

Question

Quizplus · Accepted Answer

Systematic risk, also known as market risk or non-diversifiable risk, refers to the risk that affects the entire market or a specific sector and cannot be eliminated through diversification. Examples of systematic risk include changes in economic conditions, interest rates, political instability, and natural disasters.

Systematic Risk