Systematic Risk refers to the underlying risk that all risky securities are exposed to which cannot be eliminated through diversification. The measure of systematic risk for listed stocks is the beta coefficient. The systematic risk, also known as market risk, is the risk of an entire market and shared by all companies in the market. Examples of systematic risk include fluctuations in exchange rates, changes in interest rates, and other risk factors that impact the entire market. Systematic risks cannot be mitigated or eliminated through diversification of the portfolio across different stocks unlike unsystematic risk which is normally mitigated through diversification.