Asked by
Mateo Donoso
on Nov 07, 2024
Verified
Systematic risk is relevant to a well-diversified investor.
Systematic Risk
The inherent risk associated with the entire market or market segment, which cannot be avoided through diversification.
Diversified Investor
An investor who spreads their investments across various assets, industries, or geographies to reduce risk.
- Recognize the contrast between systematic and unsystematic risk.
- Comprehend the influence diverse risks have on asset prices and their yields.
Verified Answer
NE
Learning Objectives
- Recognize the contrast between systematic and unsystematic risk.
- Comprehend the influence diverse risks have on asset prices and their yields.