Market risk is also referred to as
A)systematic risk, diversifiable risk.
B)systematic risk, nondiversifiable risk.
C)unique risk, nondiversifiable risk.
D)unique risk, diversifiable risk.
E)none of the above.

Question

Quizplus · Accepted Answer

Market risk is a type of systematic risk that affects the overall market, such as changes in interest rates, inflation, and geopolitical events. It is also referred to as nondiversifiable risk because it cannot be eliminated through diversification. Unique risk, on the other hand, is a type of unsystematic risk that affects individual securities and can be diversified away.

Market Risk Is Also Referred to as