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What does systematic risk refer to in investment analysis?
  • a)
    Risk associated with changes in interest rates
  • b)
    Risk unique to a specific security
  • c)
    Risk caused by fluctuations in the overall market
  • d)
    Risk related to inflation
Correct answer is option 'C'. Can you explain this answer?
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What does systematic risk refer to in investment analysis?a)Risk assoc...
Systematic risk, also known as market risk, pertains to the variability in investment returns caused by fluctuations in the overall market or economy. It affects all securities to some degree and is not specific to any particular security. Systematic risk includes factors like market downturns, economic recessions, and other macroeconomic influences that impact the entire market.
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