systematic risk


Definition
Risk which is common to an entire class of assets or liabilities. The value of investments may decline over a given time period simply because of economic changes or other events that impact large portions of the market. Asset allocation and diversification can protect against systematic risk because different portions of the market tend to underperform at different times. also called market risk.

Related Terms

APT -  More

Arbitrage Pricing Theory -  More

nondiversifiable risk -  More

Related Personal Finance Articles

Loading...

systematic risk in the news

Loading...

systematic risk is ...

... part of the Bonds, Stocks and Trading subjects.

Search volume for systematic risk

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z