Market risk is also known as
A)unsystematic risk.
B)diversifiable risk.
C)systematic risk.
D)random risk.

Question

Quizplus · Accepted Answer

Market risk is also called systematic risk because it is inherent in the overall market and cannot be diversified away through portfolio choices. Unsystematic risk (also known as diversifiable risk) can be mitigated through diversification of a portfolio, while random risk is not a commonly used term in finance.

Market Risk Is Also Known as