Final answer:
Systematic risk, which refers to the broad economic risks affecting the entire market or market segment that cannot be avoided through diversification, is more accurately known as 'nondiversifiable risk'. Therefore correct option is C
Step-by-step explanation:
Systematic risk refers to the occurrence of economic risks that are inherent to the entire market or market segment, and therefore, cannot be mitigated through diversification. This type of risk is also known as nondiversifiable risk because it affects all investments in some way. It is caused by factors that are external to a company, such as economic recessions, political instability, changes in interest rates, natural disasters, and global events.
The correct answer to the question would be 'c) nondiversifiable risk.' These economic risks are over which individuals have very little control. For instance, if there is a natural disaster or a country goes to war, these events would impact the overall economic environment, affecting investors' portfolios despite their diversification efforts.