Business / Taxes / Systematic Risk: Systematic risk, also called market risk, is risk that’s characteristic of an entire market, a specific asset class, or a portfolio invested in that asset class. It’s the opposite of the risk posed by individual securities in a class or portfolio, also known as nonsystematic risk. The predictable impact that rising interest rates have on the prices of previously issued bonds is one example of systematic risk.
Systematic Noun Synonyms: organized, systematized, planned, methodical, businesslike, orderly, well-organized, well-ordered, regular, routine, standardized, standard
Business / Finance / Nonsystematic Risk: Nonmarket or firm-specific risk factors that can be eliminated by diversification. Also called unique risk or diversifiable risk. Systematic risk refers to risk factors common to the entire economy. MORE
Business / Finance / Market Risk: Risk that cannot be diversified away. Related: Systematic risk MORE