Market risk is:

A) caused by things that affect all stocks.
B) the chance that an investor will lose money in the stock market.
C) diversified away.
D) the variance of the probability distribution.

Market Risk

The risk of losses in investments caused by factors affecting the entire market or economy, such as recessions or political instability.

Probability Distribution

A statistical model that demonstrates all possible values and their likelihoods for a random variable across a certain range.