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Finance Dictionary and Glossary of Investment Terms
Risk that cannot be eliminated by having a large portfolio of many assets.
Risk which is common to an entire class of assets or liabilities. The value of investments may decline over a given time period simply because of economic changes or other events that impact large portions of the market. Asset allocation and diversification can protect against nondiversifiable risk because different portions of the market tend to underperform at different times. also called systematic risk or market risk.