What is systematic risk?Multiple choice question.It is a risk that increases in a systematic, gradual fashion.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 pertains to a large number of assets.
Question
What is systematic risk?Multiple choice question.It is a risk that increases in a systematic, gradual fashion.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 pertains to a large number of assets.
Solution
Systematic risk is a risk that pertains to a large number of assets. This type of risk is unpredictable and impossible to completely avoid. It is also known as "market risk" or "undiversifiable risk" because it affects all market sectors and is not specific to a particular company or industry.
Similar Questions
Which of the following best describes the concept of 'systematic risk' A. Risk that can be eliminated through diversification B. Risk associated with a particular company or industry C. Risk that affects the entire market and cannot be eliminated through diversification D. Risk of changes in regulatory policies
Systematic risk is also called Blank______ risk.Multiple choice question.marketindustry-specificworldwidediversifiable
Which of the following are examples of systematic risk?Multiple select question.future rates of inflationlabor strikesregulatory changes in tax ratesan increase in competition in the industry
Question 4Market (or systematic) risk ___________ whereas idiosyncratic risk __________. 1 pointIs the risk for an asset to not be able to be traded in the market at a later timeIs the risk for an asset to experience losses due to factors that affect the entire stock marketIs the risk for an asset to experience losses due to factors that affect the entire stock marketIs the risk which is endemic to a specific asset and therefore not the market as a wholeIs the risk for an asset to experience losses due to factors that affect the entire stock marketIs the risk which is endemic to the industry of the asset and therefore not the market as a wholeIs the risk for an asset to experience losses due factors that solely affect the industry associated with the asset Is the risk which is endemic to a specific asset and therefore not the market as a whole
6. Diversifiable risk is also referred to asA. systematic risk, unique risk.B. systematic risk, market risk.C. unique risk, market risk.D. unique risk, firm-specific risk.E. none of the above.
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