Systematic risks
A)can be eliminated by investing in a variety of economic sectors.
B)are forces that affect all investment categories.
C)result from random firm-specific events.
D)are unique to certain types of investment.

Question

Quizplus · Accepted Answer

Systematic risks (also known as market risks) are forces that affect all investment categories, such as changes in interest rates, political instability, and natural disasters. They cannot be eliminated by diversifying within one economic sector or specific investment type.

Systematic Risks