systemic risk

Definition 1

General: Probability of loss or failure common to all members of a class or group or to an entire system. Erroneously also called systematic risk.

Definition 2

Investing and trading: Probability of loss common to all businesses and investment opportunities, and inherent in all dealings in a market. Also called market risk, it cannot be circumvented or eliminated by portfolio diversification but may be reduced by hedging. In stock markets, systemic risk is measured by beta-coefficient.


systemic risk is...

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