Systematic risk is also referred to as
A)market risk, nondiversifiable risk.
B)market risk, diversifiable risk.
C)unique risk, nondiversifiable risk.
D)unique risk, diversifiable risk.
E)None of the options

Question

Quizplus · Accepted Answer

Market, systematic, and nondiversifiable risk are synonyms referring to the risk that cannot be eliminated from the portfolio.Diversifiable, unique, nonsystematic, and firm-specific risks are synonyms referring to the risk that can be eliminated from the portfolio by diversification.

Systematic Risk Is Also Referred to as