Unsystematic risk is the risk that is unique to a specific company or industry. It's also known as nonsystematic risk,specific risk, diversifiable risk, or residual risk. In the context of an investment portfolio, unsystematic risk can be reduced through diversification—while systematic risk is ...
Broadly speaking, there are two main categories of risk: systematic and unsystematic. Systematic risk is the market uncertainty of an investment, meaning that it represents external factors that impact all (or many) companies in an industry or group. Unsystematic risk represents the asset-specific u...
Learn all about systematic and unsystematic risks. Understand what systematic and unsystematic risks are, learn their multiple types, and see...
C.both systematic risk and unsystematic risk. 单项选择题 For an investor borrowing money at the risk-free interest rate to invest in the market portfolio, the estimated rate of return of his portfolio is most likely to: A.increase.
systematic risksunsystematic riskThis chapter helps the students to identify, measure, and differentiate between types of investment risks, including systematic, unsystematic risk, interest‐rate risk, liquidity risk, credit risk, inflation risk, operating and financial risk, reinvestment‐rate risk, ...
It is also known as specific, or unsystematic risk. Certain securities will naturally have more idiosyncratic risk than others. Idiosyncratic risk can generally be mitigated in an investment portfolio through the use of diversification. The opposite of Idiosyncratic risk is a systematic risk, which re...
The risk of a general economic turndown, or depression, is an example ofsystematic risk. The risk that Apple may lose market share to a competitor is unsystematic risk. Between the time a futures position is initiated and closed out, the spread between the futures price and the spot price ...
Another name for Market risk is “Systematic risk,” which affects the entire financial market as a whole. Hence, these are beyond the control of any individual or organization. Such risk can be controlled or curtailed by various strategies. The strategies may call for diversifying the various ...
Describe factors that characterize a typical firm's business model in each industry. Describe how such factors would contribute to difference in systematic risks. What factors cause some firms to become more internationalized than others? What type(s) of investors can make money in a weak-form ef...
Moreover, we find that the informative risk types do not necessarily increase the risk perceptions of investors---the disclosure of three types of systematic and liquidity risks will increase the risk perceptions of investors, whereas the other five types of unsystematic risks will decrease them....