What is systematic risk?
Market-wide risk from forces such as interest rates, inflation, recessions, and capital-market conditions. It cannot be diversified away and, under CAPM, is the risk that earns a market return premium.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.