Why Is Systematic Risk Also Called Non- Diversifiable Risk

question 23

Multiple Choice

Why is systematic risk also called non- diversifiable risk?

• A)It is risk which is driven by broad market- related factors and therefore common to all securities.
• B)It is a residual risk,with no way of being quantified.
• C)It is risk which is specific to each individual security.
• D)None of the above

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Definitions:

Advanced Topics

Subjects or areas of study that go beyond the basic or introductory level, focusing on more complex theories, practices, or methods within a discipline.

Near Transfer

The application of learned skills or knowledge from one context to a very similar context, with minimal adjustments needed.

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Various contexts or environments in which training is conducted, tailored to meet the learning objectives and needs of participants.

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