Systematic Risk
Systematic Risk is a risk common for entire market. Negative events, such as wars and recessions, affect large portions of market and can bring great decline in the value of investments.
Systematic risk can be avoided only by hedging, because of the impact on the market as a whole.
Systematic risk is also called “undiversifiable risk” or "market risk."
| Related Terms: Unsystematic Risk Unlevered Beta |