Asked by Andres Soler on Jun 05, 2024
Verified
Provide a definition for systematic risk.
Systematic Risk
The risk inherent to the entire market or a whole market segment, which cannot be mitigated through diversification alone.
- Understand the importance of beta in evaluating systematic risk within investment portfolios.
- Acquire knowledge on the distinction between diversifiable and non-diversifiable risk.
Verified Answer
ML
Micaela LopezJun 08, 2024
Final Answer :
A risk that influences a large number of assets. Also called market risk.
Learning Objectives
- Understand the importance of beta in evaluating systematic risk within investment portfolios.
- Acquire knowledge on the distinction between diversifiable and non-diversifiable risk.