American Academy of Financial Management (AAFM) Practice Test
AAFM AAFM Risk Management and Ethics
What is systematic risk versus unsystematic risk?
Select your answer
A
Systematic affects all markets (cannot be diversified away); unsystematic is specific to a company/industry (can be diversified away)
B
They are the same type of risk
C
Systematic risk only affects banks
D
Unsystematic risk cannot be managed
Hint