Market risk, a risk that is attributable to market wide risk. This risk is a non-diversifiable risk because if the market collapses, most stock prices will fall. Another way to describe systematic risk is a risk factor common to the whole economy.
The potential for a security to decrease in value owing to its inherent tendency to move together with all securities of the same type. Neither diversification nor any other investment strategy can eliminate this risk.
Also known as "market risk," it refers to the risk attached to the overall market, rather than to an individual stock or bond. When an entire national bond or stock market rises or falls, most of the individual securities in that market tend to rise and fall with the market. (Also see unsystematic risk.)
in relation to the market, the risk that is common to all risky securities and cannot be eliminated through diversification. In relation to an investment, the uncertainty of future returns resulting from the tendency of a security's returns to respond to swings in the broad market.
Definition - This is the risk that is associated with the entire market. It cannot be diversified away, since economic and market conditions affect all stocks. At AmeriCap - Because of our focus on highly liquid, large-cap stocks, we can fully diversify our portfolio to the point where we minimize unsystematic risk so that the primary risk that is left is systematic.
This is the market risk that a security faces and is essentially non-diversifiable in nature. This risk is caused by macro level factors like changes in inflation, interest rates, budget announcements etc.
Risk that affects the market as a whole. It cannot be diversified and stems from political and economical factors. Opposite of unsystematic risk. otal Return — The return on an investment over a certain period. Includes realized or unrealized capital gain or loss and dividend or interest represented as a percentage of the investment`s value at the beginning of the period.
The portion of the asset's total variance (risk) attributable to the variability of the general market movements. Systematic risk is inherent in a fully diversified portfolio (or "market portfolio"), and cannot be "diversified away" by employing traditional investment strategies.
Also called undiversifiable risk or market risk, the minimum level of risk that can be obtained for a portfolio by means of diversification across a large number of randomly chosen assets. Related: Unsystematic risk
One of the components into which the risk of an asset,as defined by its price volatility, is usually divided - the other is specific risk. The systematic risk is the portion of the risk that relates to the movements in the underlying market of which this asset forms part. Systematic risk is normally measured in terms of beta. It should not be confused with systemic risk.
The risk associated with general market movements, rather than the risk associated with an individual security movement (see also Nonsystematic risk). Systematic risk can usually be hedged with stock-index futures or options.