Systematic risk is the kind of risk the whole asset market faces that cannot be eliminated by simple diversification.

Name: Systematic risk is the kind of risk the whole asset market faces that cannot be eliminated by simple diversification.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Systematic risk, also known as market risk, affects the entire market or a large segment of the market and cannot be mitigated just by diversifying a portfolio, as it includes risks such as economic recessions, political turmoil, or changes in interest rates.

Systematic Risk Is the Kind of Risk the Whole Asset