Systematic risk refers to: movements in a stock portfolio's value that are attributable to macroeconomic forces affecting all firms in an economy. the level of diversifiable risk in an economy. movements in a stock portfolio's value that are attributable to microeconomic forces affecting the specific firms invested in. the microeconomic forces that affect rates of return on investments.

Question

Kaden

Business

25 June, 14:05

Systematic risk refers to: movements in a stock portfolio's value that are attributable to macroeconomic forces affecting all firms in an economy. the level of diversifiable risk in an economy. movements in a stock portfolio's value that are attributable to microeconomic forces affecting the specific firms invested in. the microeconomic forces that affect rates of return on investments.

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Answers (1)

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Theresa Weber · Answer 1

The correct answer is the first statement saying systematic risk affects all the firms in the economy and are caused by macroeconomic factors.

Explanation:

Systematic risk is a type of risk associated with changes in the value of a stock which affects all the firms in the economy. It is caused by macroeconomic factors which are beyond the control of a single individual or firm.

It is also termed as volatility and market risk. It cannot be avoided through portfolio diversification.