The risk that is associated with an asset's return arising from the covariance of the return with the return on a large,well-diversified portfolio is known as ________ risk.

Question

Quizplus · Accepted Answer

Systematic risk is the risk inherent to the entire market or market segment, and it is associated with the covariance of an asset's return with the return on a well-diversified portfolio.

The Risk That Is Associated with an Asset's Return Arising