Financial Education

Systematic Risk

Market-wide risk that can't be diversified away

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Risk

Systematic Risk

Market-wide risk that can't be diversified away

Definition

Systematic risk affects the entire market and cannot be eliminated through diversification. Includes interest rate changes, recessions, and geopolitical events. Measured by beta relative to market index.

Related Topics

#market risk #undiversifiable risk #beta #macro factors

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Category: Risk

Risk management involves identifying, assessing, and controlling potential losses in investment portfolios.

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