Large number of assets

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Firstly a systematic risk is one that deals with a large number of assets and can also be labeled as a market risk, on the other hand a non systematic risk is quite the opposite in that it deals with only a small number of assets and are unique to individual companies and assets. An example of a systematic risk includes the uncertainty of various general economic conditions. An example of unsystematic risk is an unplanned raise or increase in inflation. The two seem to contradict one another quite well so it would be difficult to confuse the two terms. Thank you.

Ross, Stephen, Randolph Westerfield, Bradford Jordan. Essentials of Corporate Finance, 8th Edition. McGraw-Hill Learning Solutions, 01/2013. [VitalSource].

Reference no: EM132137135

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