Inflation, recession, and high interest rates are economic events which are characterized as
A) Company-specific risk that can be diversified away.
B) Market risk.
C) Systematic risk that can be diversified away.
D) Diversifiable risk.
E) Unsystematic risk that can be diversified away.

Question

Quizplus · Accepted Answer

These events are considered market risk, which is a type of systematic risk that affects the entire economy and cannot be diversified away.

Inflation, Recession, and High Interest Rates Are Economic Events Which