Match each investor scenario on the left with the primary systematic risk factor that directly drives its financial impact on the right.
- A U.S. investor holding unhedged international equities experiences reduced returns in U.S. dollars when foreign exchange rates move unfavorably.Currency (Exchange Rate) Risk
- An investor holding fixed-rate long-term corporate bonds experiences a steep decline in bond market value following a surge in benchmark interest rates.Interest Rate Risk
- A retiree living on fixed annual annuity distributions finds that cash payouts buy fewer goods and services over time as consumer prices rise.Purchasing Power (Inflation) Risk
- A well-diversified U.S. broad-market equity index fund suffers significant price losses during a general macroeconomic downturn.Market Risk
Cevap
Each scenario maps to its underlying systematic risk: foreign exchange fluctuations correspond to Currency Risk; interest rate increases driving bond price declines correspond to Interest Rate Risk; rising living costs eroding fixed income correspond to Purchasing Power (Inflation) Risk; and general market downturns affecting diversified equity holdings correspond to Market Risk.
Each pair correctly matches an un-diversifiable systematic risk factor to its specific macroeconomic mechanism: currency volatility creates exchange rate risk, changing benchmark rates create interest rate risk, rising price levels create purchasing power risk, and macro market sell-offs create market risk.
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Anahtar Kavram
Systematic risks affect the overall market or macro economy and cannot be eliminated by asset diversification alone.