Systematic risk is defined as:
A)a risk that specifically affects an asset or small group of assets.
B)any risk that affects a large number of assets.
C)any risk that has a huge impact on the return of a security.
D)the random component of return.
E)None of the above.

Question

Quizplus · Accepted Answer

Systematic risk is also known as market risk and affects a large number of assets, such as changes in interest rates, inflation, or political instability. It cannot be diversified away through portfolio diversification.

Systematic Risk Is Defined As