Which one of the following describes systemic risk?
A)Risk that affects a large number of assets
B)An individual security's total risk
C)Diversifiable risk
D)Asset specific risk
E)Risk unique to a firm's management

Question

Quizplus · Accepted Answer

Systemic risk refers to the risk that affects a large number of assets or the overall market, rather than just a specific asset or company. This type of risk is typically not diversifiable and can arise from factors such as economic downturns or global events.

Which One of the Following Describes Systemic Risk