Question

What is Systematic Risk in the context of portfolio management?

a.

Risk specific to individual assets

b.

Risk common to an entire class of assets and cannot be diversified

c.

Risk arising from company-specific factors

d.

Risk associated with market fluctuations only

Posted under IC 89 Management Accounting

Answer: (b).Risk common to an entire class of assets and cannot be diversified Explanation:Systematic Risk is the variability of return on stocks or portfolio due to changes in factors like the nation's economy, tax reforms, or world energy situations, common to an entire class of assets and cannot be diversified.

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Q. What is Systematic Risk in the context of portfolio management?
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