Asked by Aydee Esparza on Jul 25, 2024
Verified
Systematic risk is another name for non-diversifiable risk.
Systematic Risk
The peril present throughout an entire market or a portion of the market that cannot be alleviated by spreading investments.
Non-diversifiable Risk
The portion of an investment's risk that cannot be eliminated through diversification, related to factors affecting the entire market.
- Learn the differences between systematic and unsystematic risk.
Verified Answer
SC
stephany castroJul 30, 2024
Final Answer :
True
Explanation :
Systematic risk, also known as market risk or non-diversifiable risk, refers to the portion of total risk that is caused by factors beyond the control of a specific company or individual, such as economic, political, or social changes that affect the entire market.
Learning Objectives
- Learn the differences between systematic and unsystematic risk.
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