What makes financial systems prone to systemic risk

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Reference no: EM131623707

a) What is the mean of beta in the CAPM?

b) If a particular Stock A has a beta = 1.7, what does it mean? Illustrate with graph

c) Explain the concepts of systemic and unsystemic risk. What is the main difference between them? Suppose that you are a portfolio manager, would be more concerned about systemic risk or unsystemic risk? why?

d) Describe what makes financial systems prone to systemic risk? In your answer refer to relevant research material.

Reference no: EM131623707

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