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Canadian Securities Course (CSC) Practice Exam · Question

Which of the following is associated with systematic risk?

Systematic risk, also known as market risk, is the risk inherent to the entire market or market segment. It cannot be diversified away and is influenced by macr

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Question: Which of the following is associated with systematic risk?

Answer options:

  • Risk specific to a particular company or industry.
  • Risk that can be eliminated through diversification. ✅ Risk inherent to the entire market or economy.
  • Risk associated with poor management decisions.

Correct answer: Risk inherent to the entire market or economy.

Explanation: Systematic risk, also known as market risk, is the risk inherent to the entire market or market segment. It cannot be diversified away and is influenced by macroeconomic factors.

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