Systematic risk associated with investing in foreign securities excludes

Question

Quizplus · Accepted Answer

Systematic risk refers to the risk that affects the entire market or economy and cannot be diversified away. Of the given options, how firms finance their assets, changes in interest rates, and inflation are all examples of systematic risk that can affect both domestic and foreign securities. However, exchange rate risk is specific to investing in foreign securities and is therefore not considered as part of the systematic risk associated with investing in foreign securities.

Systematic Risk Associated with Investing in Foreign Securities Excludes