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Market risk is also known as
  • a)
    systematic risk or diversifiable risk
  • b)
    unsystematic risk or diversifiable risk
  • c)
    systematic risk or non-diversifiable risk
  • d)
    unsystematic risk or non-diversifiable risk
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Market risk is also known asa)systematic risk or diversifiable riskb)u...
Market risk is the risk that the value of an investment will decrease due to changes in market factors. Market risk is sometimes called systematic risk because it relates to factors, such as a recession, that impact the entire market. They are also known as non-diversifiable risk as these cannot be reduced by diversification.
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Market risk is also known asa)systematic risk or diversifiable riskb)unsystematic risk or diversifiable riskc)systematic risk or non-diversifiable riskd)unsystematic risk or non-diversifiable riskCorrect answer is option 'C'. Can you explain this answer?
Question Description
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