The effect of changes in the level of interest rates on security returns is an example of ____.
A)systematic risk
B)unsystematic risk
C)nondiversifiable risk
D)a and c only
E)b and c only

Name: The effect of changes in the level of interest rates on security returns is an example of ____. A)systematic risk B)unsystematic risk C)nondiversifiable risk D)a and c only E)b and c only
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Question

Quizplus · Accepted Answer

Changes in interest rates affect the entire market, making it a systematic risk, which is also nondiversifiable.

The Effect of Changes in the Level of Interest Rates