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

Determine the measurement of risk, Determine the Measurement of Risk ...

Determine the Measurement of Risk There are three methods: (1) Volatility: Volatility may be described as range of movement (or price fluctuation) from the expected lev

How can risks be managed in the public sector, Question 1: i) How may ...

Question 1: i) How may risks be managed in the Public Sector? ii) Will e-government be an efficient means of providing financial information? Question 2: i) What a

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

State about the management risk, State about the Management Risk Man...

State about the Management Risk Management, all said and done, is made of people who are mortal, fallible and capable of making a mistake or a poor decision. Errors made by

What is avoidance of risk, Q. What is Avoidance of Risk? A business fir...

Q. What is Avoidance of Risk? A business firm can avoid risk by not accepting any assignment or any transaction which involves any type of risk whatsoever. This will naturally

Principles of a sensible risk management, Question 1: (a) Risk Assessm...

Question 1: (a) Risk Assessment is essentially a five steps process. Describe how each of these steps should be carried out to ensure a safe and healthy place of work. (b)

Report of the audit committee , Determine any qualitative factors or inform...

Determine any qualitative factors or information in the annual reports and accounts for Home Retail Group plc for 2011, containing the report if the audit committee, that you as th

Roles and responsibilities for risk communication, Roles  and Responsibil...

Roles  and Responsibilities  for Risk Communication A) Governments B) Consumer  and  Consumer  Organizations C) Acudemic  and  Research Institutions

Audit of home retail group , Critically assess the risk-based approach to e...

Critically assess the risk-based approach to external audit with particular reference to the audit of Home Retail Group plc. Note: You must give examples of how you might col

Post-loss objectives, discuss the post-loss objectives that would help firm...

discuss the post-loss objectives that would help firm recover

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