Systematic risk


Systematic risk cannot be avoided and is inherent in the overall market.  Examples of factors that constitute systematic risk include interest rates, inflation, political uncertainty, and widespread natural disasters.  Unlike unsystematic risk, systematic risk is non-diversifiable because such risk factors affect the market as a whole. Even if a portfolio is well diversified, the other assets would probably do just as badly, and the entire portfolio would suffer.  

Compare: Unsystematic risk