Glossary

Glossary

Term Book Chapter Definition
Systematic Risk CFA Level 1 Exam Chapter 6: Portfolio Management The risk that remains after diversification, which is unavoidable and inherent to the entire market or market segment.
Systematic Risk Corporate Finance Chapter 6: Risk and Return Also known as market risk, this type of risk arises from factors that affect the entire market, such as economic downturns or geopolitical events. It cannot be diversified away.