Systematic risk, Risk Management

Assignment Help:

Systematic Risk

Systematic risk is any risk which affects the value of a huge number of assets; therefore, each asset will have a various degree of sensitivity to the underlying risk. In financial markets, if investors maintain large, well-diversified portfolios, then asset prices will be affected only by this kind of risk. Higher systematic risk will increase an investor's expected returns. Therefore, systematic risk cannot be diversified away.


Related Discussions:- Systematic risk

Explain the use of hani-raafat risk calculator, Question 1: (i) Descri...

Question 1: (i) Describe five steps to risk assessment for work-related driving activities. (ii) List ten important points which employers should consider to ensure that wo

Risk, Explain how budget planning is related risk management

Explain how budget planning is related risk management

Risk management, Risk Management Many organization and investors engag...

Risk Management Many organization and investors engage in activities designed to manage the risks they face. In the corporate world the managers' search to control business ri

What are the general principles of risk management, The general principles ...

The general principles  of risk management are: A) Management  to  follow a structured approach B) Protection of human health as the primary consideration in risk management

What is risk appetite?, QUESTION 1 A. Answer all of the following (a...

QUESTION 1 A. Answer all of the following (a) What is risk appetite? (b) List any two risk responses (c) What does ITIL stand for? (d) What is a business case? (

Hedgeable risks, what are the characteristics of hedgeable risks

what are the characteristics of hedgeable risks

Four critical components of risk-management integrity, The purpose of this ...

The purpose of this memorandum is to outline in sufficient detail the terms of the audit engagement. In planning the audit engagement for Toy Local Corporation for the year ended O

Components of risk management system, (a) Risk has always been an intrinsi...

(a) Risk has always been an intrinsic part of project management. With increasing market competition, technology, and globalisation, risk management is continuously gaining wider

Bankruptcy of lehman brothers, In its early stages, the financial crisis ma...

In its early stages, the financial crisis manifested itself as an acute liquidity shortage among financial intermediaries. In this phase, concerns over the solvency of the sophisti

Explain the equilibrium rate of return, Portfolio theory tries to the expla...

Portfolio theory tries to the explain the equilibrium rate of return or the price fixation in capital market through the two important relationship these include: 1) capital mar

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd