Systematic risk represents:
A)diversifiable risk.
B)risk that is unavoidable.
C)risk that is diversifiable.
D)none of the options given.

Question

Quizplus · Accepted Answer

Systematic risk represents the risk that is unavoidable and affects the overall market, such as economic conditions, geopolitical events, and natural disasters. It cannot be eliminated through diversification. Therefore, option B is the correct answer. Option A is contradicted, as systematic risk cannot be diversified away. Option C is incorrect because systematic risk is not diversifiable. Option D is not a valid option.

Systematic Risk Represents