What Is Systematic & Unsystematic Risk ?
- 4 Answers
- 13829 Views
- Broadridge, I also Faced
- E-Mail Answers
Answer Posted / satish kumar
Risk in holding securities is generally associated with
possibility that realized returns will be less than the
returns that were expected.
Systematic risk
Unsystematic risk
Systematic risk refers to that portion of total variability
in return caused by factors affecting the prices of all
securities. Economic, political, and sociological changes
are sources of systematic risk. Their effect is to cause
prices of nearly all individual common stocks and/or all
individual bonds to move together in the same manner.
influences are external to the firm, cannot be controlled,
and affect large numbers of securities
1 Market Risk
2 Interest-Rate Risk
3 Purchasing-Power Risk
Unsystematic risk is the portion of total risk that is
unique to a firm or industry. Factors such as management
capability, consumer preferences, and labor strikes cause
systematic variability of returns in a firm.
Business Risk
Internal Business Risk
a) Fluctuation in sales.
b) Research &Development.
c) Personal Management.
d) Fixed cost.
e) Single product.
External Business Risk
a) Social factor
b) Political Risk
c) Business cycle
Financial Risk
| Is This Answer Correct ? | 11 Yes | 2 No |
Post New Answer View All Answers
What do you mean by money laundering?
What is meant by bossism?
Name the types of money?
What are your views on the performance of India Paralympics?
What do you know about the Banking Sector?
What Is The Role Of Bank Supervision?
What is the difference between nationalised bank and private bank?
Which committee had worked for the recapitalisation of regional rural banks (rrb’s)?
What is your biggest failure in life?
How do you define Personas?
What is 'zero based budget (zbb)'?
What do you mean by return on assets?
What are the latest gold schemes launched by government and their various benefits?
What do you know about CORE Banking Solutions?
Are There Additional Documents And Other Requirements In A Chapter 13 Case? What Is Required In The Chapter 13 Plan?
