Systematic risk refers to movements in a stock portfolio's value that are attributable to macroeconomic forces affecting all firms in an economy,rather than factors specific to an individual firm.

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Systematic risk, also known as market risk, is the risk that affects the overall market and cannot be eliminated by diversifying a portfolio. It is caused by factors such as political events, economic changes, natural disasters, and overall market trends. As such, it affects all firms in the economy and their stock values.

Systematic Risk Refers to Movements in a Stock Portfolio's Value