The _____ of a security is the portion of the security?s return variance that is explained by market movements.

Question

Quizplus · Accepted Answer

The systematic risk of a security represents the portion of its return variance that is explained by market movements. This risk cannot be diversified away since it affects the entire market. Business-specific risk, non-market risk, and diversifiable risk refer to risks that can be diversified away by investing in a portfolio of securities.

The _____ of a Security Is the Portion of the Security?s