Which of the following statements regarding systematic risk is true?
A) Only common stocks have systematic risk.
B) Virtually all securities have systematic risk.
C) It is impossible to measure systematic risk.
D) Systematic risk is measured by the covariance.

Question

Quizplus · Accepted Answer

Systematic risk, also known as market risk, affects virtually all securities and the market as a whole. It is the risk inherent to the entire market or market segment and cannot be eliminated through diversification.

Which of the Following Statements Regarding Systematic Risk Is True