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SR, or Systematic Risk, refers to the overall risk of a system or investment that cannot be diversified away. It is influenced by external factors such as economic conditions, market trends, and geopolitical events. SR can impact the performance of a system by affecting the overall volatility and potential returns of the system. Higher SR typically means higher risk and potential for greater losses, while lower SR indicates lower risk and potentially lower returns. It is important for investors to consider SR when making investment decisions to manage risk effectively.
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Earn +20 ptsQ: What is SR and how does it impact the performance of the system?
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