SIE practice questionmediumSystematic vs unsystematic risk
Systematic risk is also referred to as:
- AMarket risk✓ Correct answer
- BBusiness risk
- CCredit risk
- DLiquidity risk
Explanation
Why A — Market risk
Systematic risk is the same as market risk, affecting all securities. Business, credit, and liquidity risks are unsystematic or specific to a firm/security.
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