Nondiversifiable risk is also referred to as
A)systematic risk, unique risk.
B)systematic risk, market risk.
C)unique risk, market risk.
D)unique risk, firm-specific risk.
E)none of the above.

Question

Quizplus · Accepted Answer

Nondiversifiable risk is also known as systematic risk or market risk. This type of risk cannot be eliminated through diversification, as it is inherent in the overall market or economy. It is caused by factors such as interest rate changes, economic recessions, and political instability, which affect all investments in the market.

Nondiversifiable Risk Is Also Referred to as