Question
Systematic Risk and Un-Systematic Risk
Answer :
Word Count : 246
__________ _____ _______ _________ ________ _______ _______ _________ ________ ____.
_____ _____ ___ _____ _________ _________ ______ ________.
____ ______ __________ __________ ____ ____ ____.
_____ _______ ______ _________ _______.
___ ______ ___ __________ __________ _____ _______ ___ __________ ____ ______.
_____ _________ ___ __________ _______ ____.
_________ ______ _____ _____ __________ __________ __________.
_____ __________ ______ ________ __________ ____ ____.
______ ________ ________ _________ ______ ___.
___ _________ ______ ___ ____ _______.
_________ ____ ______ ______ _______ _______ _______ ____.
________ __________ ___ ___ ______ _________ ________.
________ ____ ______ _______ _________ _____ _____ _____.
________ _________ ________ _____ __________ _______ ______ _______ ____.
__________ _____ ___ ________ __________ __________ ______ __________ _____ ____.
___ ________ ________ ________ ______ ________ _________ __________ ______ ________ ___.
_______ _______ ___ _____ ____ _______ _____ ___.
______ _________ ________ _______ ________ _______ __________ ___ _______.
______ _______.
Skip in 10
Systematic risk, also known as market risk, refers to the risk inherent to the entire market or a particular segment of the market. It arises due to factors that affect the overall economy, such as inflation, interest rate changes, recessions, political instability, or natural disasters. Since these risks influence all securities in the market, they cannot be eliminated through diversification. Investors are compensated for bearing systematic risk through expected returns, and it is typically measured by the beta coefficient in the Capital Asset Pricing Model (CAPM), which shows a security’s sensitivity to market
_________ ____ ____ _________ ________ __________ _______ _____.__________ _____ _______ _________ ________ _______ _______ _________ ________ ____.
_____ _____ ___ _____ _________ _________ ______ ________.
____ ______ __________ __________ ____ ____ ____.
_____ _______ ______ _________ _______.
___ ______ ___ __________ __________ _____ _______ ___ __________ ____ ______.
_____ _________ ___ __________ _______ ____.
_________ ______ _____ _____ __________ __________ __________.
_____ __________ ______ ________ __________ ____ ____.
______ ________ ________ _________ ______ ___.
___ _________ ______ ___ ____ _______.
_________ ____ ______ ______ _______ _______ _______ ____.
________ __________ ___ ___ ______ _________ ________.
________ ____ ______ _______ _________ _____ _____ _____.
________ _________ ________ _____ __________ _______ ______ _______ ____.
__________ _____ ___ ________ __________ __________ ______ __________ _____ ____.
___ ________ ________ ________ ______ ________ _________ __________ ______ ________ ___.
_______ _______ ___ _____ ____ _______ _____ ___.
______ _________ ________ _______ ________ _______ __________ ___ _______.
______ _______.
IGNOU ACADEMY
Your IGNOU journey, made easier.
- Solved Assignments
- Study Notes
- Guess Papers
- Question Papers
Continue Reading — It's Free
Sign in with Google to unlock more of this answer.
✓ Free access
✓ Unlock up to 60% of the answer
✓ No payment required
✓ Unlock up to 60% of the answer
✓ No payment required
Quick Google sign-in. No separate registration form.