Which of the following is another term for market risk? Multiple Choice Firm specific risk Nondiversifiable...

Which of the following is another term for market risk? Multiple Choice Firm specific risk Nondiversifiable risk Modern portfolio risk Total risk

Expert Solution

Nondiversifiable risk

Market risk is also called a systematic risk which also means it cannot be reduced with diversification. It can be caused due to macroeconomic factors which are beyond the control of the investors.

Example - Market crash in India due to the US-China trade wars

jeff jeffy answered 2 years ago

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