Hi, first time posting here so let’s see what comes of it. I’m early on in the SIE study program and am learning about systematic risk. It states the two risks within systematic risk are market risk and inflation risk. I’ve read from other sources that interest rate risk is systematic as well. Is this correct? Maybe there are subcategories of risk and interest rate risk is amongst them? Any help would be appreciated. Thank you!
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Absolutely - interest rate risk is a systematic risk related to fixed-income securities.
You’ll get to it soon!