Systematic risk is also referred to as:

Question

Quizplus · Accepted Answer

Systematic risk is also known as market risk because it is the risk that is inherent in the entire market or economy and cannot be diversified away. This type of risk affects all securities in the market, regardless of their individual characteristics. Option A (economic risk) and Option D (financial risk) both refer to specific types of risks that are not synonymous with systematic risk. Option B (diversifiable risk) is also known as unsystematic risk and is the type of risk that can be minimized through diversification.

Systematic Risk Is Also Referred to As