Systematic Risk

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.

Other Words for Risk

Risk Noun Synonyms: danger, peril, jeopardy, hazard, chance, gamble
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Other Words for Systematic

Systematic Noun Synonyms: organized, systematized, planned, methodical, businesslike, orderly, well-organized, well-ordered, regular, routine, standardized, standard
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Nonsystematic Risk

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

Market Risk

Business / Finance / Market Risk: Risk that cannot be diversified away. Related: Systematic risk MORE

Risk

Business / Accounting / Risk: Exposure to loss of investment capital due to a variety of causes such as business failure, stock market volatility, and interest rate changes. In business, the likelihood of loss or reduced profit. MORE

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