Systematic risk refers to
A)the diversifiable (company specific)risk of an asset.
B)the nondiversifiable (market)risk of an asset.
C)economic and political risk.
D)the risk that can be hedged.

Question

Quizplus · Accepted Answer

Systematic risk refers to nondiversifiable (market) risk of an asset which comprises of factors that affect the entire market such as changes in interest rates, inflation or geopolitical events. It cannot be eliminated through diversification and affects the overall market returns.

Systematic Risk Refers to