This is when an entire class of assets or liabilities is subject to the same level of risk. The value of investments may decline over a given time period simply because of economic changes or other events that impact large portions of the market. This risk cannot be avoided through diversification within a market segment but may be avoided through asset allocation and diversification different market segments because different portions of the market tend to underperform at different times. This risk is also referred to as a market risk and systemic risk.