While there is systematic risk within a nation,it may be ______ and diversifiable outside the country after constructing a global portfolio.

Question

Quizplus · Accepted Answer

Systematic risk is also known as market risk and refers to the risk inherent in the overall market or economy. Non-systematic risk, on the other hand, is specific to an individual company or industry and can be diversified away by investing in a portfolio of different stocks or assets. Therefore, while systematic risk may be present within a specific country, it can be diversifiable outside the country by constructing a global portfolio, as long as the risk is non-systematic.

While There Is Systematic Risk Within a Nation,it May Be