Systematic risk is relevant to a well-diversiﬁed investor.

Name: Systematic risk is relevant to a well-diversiﬁed investor.
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

Systematic risk, also known as market risk, affects the overall market and cannot be diversified away. Therefore, it is relevant to all investors, especially those who have a well-diversified portfolio. By diversifying their investments, investors can minimize the impact of systematic risk on their portfolio.

Systematic Risk Is Relevant to a Well-Diversiﬁed Investor