Risk that affects all firms is called
A) total risk.
B) management risk.
C) nondiversifiable risk.
D) diversifiable risk.

Question

Quizplus · Accepted Answer

Nondiversifiable risk, also known as systematic risk or market risk, affects all firms in the market and cannot be eliminated through diversification. It includes factors such as inflation, interest rates, and economic recessions that impact the overall market performance.

Risk That Affects All Firms Is Called