Systematic Risk

Systematic Risk is risk caused by factors that affect the prices of virtually all securities, such as an entire class of assets and/or liabilities. Systemic risk may apply to a certain country or industry, or to the entire global economy.

Systematic Risk

Systematic Risk is the risk inherent to the entire market or entire market segment.

 


Interpretation of Systematic Risk

Systematic Risk is risk caused by factors that affect the prices of virtually all securities, such as an entire class of assets and/or liabilities. Systemic risk may apply to a certain country or industry, or to the entire global economy. Some investors mitigate such forms of systemic risk by buying different kinds of securities and/or by buying in different industries.


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