Investors are rewarded for the ____ risk they assume.
A) Total.
B) Marginal.
C) Unsystematic.
D) Systematic.
E) Inﬂation adjusted.

Question

Quizplus · Accepted Answer

Investors are rewarded for the systematic risk they assume. Systematic risk refers to risk that is inherent in the overall market or economy, such as changes in interest rates, geopolitical events, or changes in consumer spending habits. This risk cannot be diversified away and affects all investments. Investors are rewarded for assuming this risk through higher expected returns.

Investors Are Rewarded for the ____ Risk They Assume