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.




systematic risk is ...
... part of the
Bonds, Stocks and Trading subjects.


Related Terms

APT -  More
Arbitrage Pricing Theory -  More
nondiversifiable risk -  More
Treynor Index, undiversifiable risk
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