Investors face the risk that the economy could go into another recession. This risk is

Question

Quizplus · Accepted Answer

The risk that the economy could go into another recession is a systemic risk, which affects the entire market or economy and cannot be diversified away. Idiosyncratic risk is specific to a particular company or sector and can be diversified away, while time preference refers to the value individuals place on receiving goods or services in the present versus the future.

Investors Face the Risk That the Economy Could Go into Another