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Like its un-correlated partner specific risk, this one has
many names, a regression-based calculation and a huge impact on
financial risk management.

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Systematic risk is measure that quantifies volatility for a company but only the piece that is related to the Market, or factors that represent the Market, meaning it is un-correlated with the company's specific risk. It is separated from specific risk in a single-variable (Market) or multi-variable (factors) linear regression. It can be computed for any of the three timeframes: historical, expected or forecast.

Synonyms: non-diversifiable risk, market risk, common factor risk, common source risk.

Click box for answer.

True

**Ted: ***So*
systematic risk * is also
called non-diversifiable, common factor and market risk?*

**Eve: ***Yep, there's a lot of job security in
risk management.*

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Keywords:

systematic risk

non-diversifiable risk

market risk

common factor risk

common source risk

market

regression

covariance matrix

factor model

risk modeling

stocks