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

Organisational and communication strategy, An organisational and communicat...

An organisational and communication strategy identifying the procurement and looking at the responsibilities, work breakdown, organisational breakdown AND the management of the cul

New student, what are the risk in management when you don''t have a fix pla...

what are the risk in management when you don''t have a fix plan of what you want o accomplish?

Futures Contracts, An Australian company purchases wheat on a regular basis...

An Australian company purchases wheat on a regular basis and is concerned about rising grain prices. It is now June and the company is in the process of planning their October whea

Explain in brief about the default risk, Explain in brief about the Default...

Explain in brief about the Default Risk It's that portion of an investment's total risk which results from changes in the financial integrity of the investment. For instance

List principles of sensible risk management, Question 1: (a) List ten p...

Question 1: (a) List ten principles of sensible risk management. (b) There is a legal duty for employers to prevent ill-health which can be caused by work. Describe the step

What is risk management, What is Risk management Risk  management  is  ...

What is Risk management Risk  management  is  to  recognise  the  risks  to  which  company  is  exposed  to,  consider  the trade-off between risks and expected returns, and c

Describe the difference between risk and uncertainty, Problem: (a) Desc...

Problem: (a) Describe the difference between risk and uncertainty. Give an example to illustrate your answer. (b) Name three common measures of risks and outline their p

Binomial model , the difference between binomial model and black-scholes fo...

the difference between binomial model and black-scholes formulation of derivative pricimg

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