Question
What is systematic risk?
Multiple choice question.
It is a risk that affects only one or a few assets.
It is a risk that is caused by failure of the internal control system of a corporation.
It is a risk that increases in a systematic, gradual fashion.
It is a risk that pertains to a large number of assets.
Multiple choice question.
It is a risk that affects only one or a few assets.
It is a risk that is caused by failure of the internal control system of a corporation.
It is a risk that increases in a systematic, gradual fashion.
It is a risk that pertains to a large number of assets.
Answers
GPT-4o mini
The correct answer is:
**It is a risk that pertains to a large number of assets.**
Systematic risk, also known as market risk, refers to the risk inherent to the entire market or market segment, which affects a large number of assets and cannot be eliminated through diversification.
**It is a risk that pertains to a large number of assets.**
Systematic risk, also known as market risk, refers to the risk inherent to the entire market or market segment, which affects a large number of assets and cannot be eliminated through diversification.