Systematic risk is:
A)totally eliminated when a portfolio is fully diversified.
B)defined as the total risk associated with surprise events.
C)risk that affects a limited number of securities.
D)measured by beta.
E)measured by standard deviation.

Question

Quizplus · Accepted Answer

Systematic risk, also known as market risk, is the risk inherent to the entire market or market segment and cannot be eliminated through diversification. It is measured by beta, which indicates how much a security's returns can be expected to move relative to the market.

Systematic Risk Is