Systematic risk is also called Blank______ risk.Multiple choice question.diversifiableindustry-specificmarketworldwide

Break Down the Problem

1. Identify the term that is synonymous with systematic risk from the given options.

Relevant Concepts

1. Systematic risk refers to the risk inherent to the entire market or market segment, which cannot be eliminated through diversification.

Analysis and Detail

1. Review the provided options:
   • Diversifiable risk: This type of risk can be mitigated through diversification and is specific to individual assets.
   • Industry-specific risk: This refers to risks that affect a particular industry, not the overall market.
   • Market risk: This is synonymous with systematic risk and refers to risks that affect the entire market.
   • Worldwide risk: This is a broad term and may refer to risks affecting the global market but is not commonly used to represent systematic risk.

Verify and Summarize

1. Systematic risk is best defined as market risk based on its characteristics and definition.

Final Answer

The correct answer is market risk.