This is another term for market risk.
A) firm specific risk
B) modern portfolio risk
C) nondiversifiable risk
D) total risk

Question

Quizplus · Accepted Answer

Nondiversifiable risk, also known as systematic risk or market risk, refers to the fluctuation of an investment's returns due to external factors affecting the entire market. This type of risk cannot be eliminated through diversification, unlike firm-specific risk, which affects only a specific company, and can be reduced through diversification. Modern portfolio theory deals with the relationship between expected returns and risk, while total risk includes both systematic and unsystematic (firm-specific) risk.

This Is Another Term for Market Risk