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What Does the Following Key Term Mean

question 72

Short Answer

What does the following Key Term mean:
-socialism

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Definitions:

Systematic Risk

The collective risk for all investments in a market or a specific part of the market that cannot be offset through diversification.

Unsystematic Risk

The danger linked to a certain company or sector that can be reduced by spreading investments across a varied portfolio.

Political Risk

The risk of loss faced by investors, corporations, and governments due to political decisions, unrest, or instability in a country.

Correlation Risk

Correlation risk is the risk of unexpected changes in the correlation between asset returns, affecting portfolio risk and valuation.

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