The systematic risk is the level of diversifiable risk in an economy.

Name: The systematic risk is the level of diversifiable risk in an economy.
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Question

Quizplus · Accepted Answer

The systematic risk, also known as market risk, is the risk that affects the overall stock market or the entire economy. It is not diversifiable and cannot be eliminated through diversification. Diversifiable risk refers to the risk that affects a specific company or industry and can be reduced through diversification. Therefore, the statement is incorrect.

The Systematic Risk Is the Level of Diversifiable Risk in an Economy