User Account

All Pages

Why not diversify unless the principle of diversification

Assignment Help Risk Management
Reference no: EM131586549

Assignment: Systematic Risk

Systematic risk is a group of large assets (i.e. market risk or non-diversifiable risk).

Unsystematic risk - also known as nonsystematic risk (diversifiable risk or asset-specific risk) is the opposite, one or small group of assets. Depending on the conditions of the market, general economic conditions may affect a company's financial health.

Answer the following questions in 100 word:

Unsystematic risk can be reduced with diversification, but systematic risk cannot. Why?

Why not diversify unless the principle of diversification is not reducing risk?

Reference no: EM131586549

Questions Cloud

Paper illustrating how you would apply one important concept : write a paper illustrating how you would apply one important concept from each chapter to professional or business work
How many shares are outstanding after the repurchase : What is the current market value of the firm? How many shares are outstanding after the repurchase?
Covers the drinking water quality experiment : Write a complete laboratory report that covers the drinking water quality experiment from "Lab 2: Water Quality and Contamination.
Define the given profitable strategy : State utility commissions typically regulate local phone companies, but local phone companies also offer long-distance service to their customers.
Why not diversify unless the principle of diversification : Unsystematic risk can be reduced with diversification but systematic risk cannot. Why not diversify unless principle of diversification is not reducing risk?
Discussion-development plan insights : Now that you have completed most of your development plan and the semester is drawing to a close, share the following with your colleagues:
What is book value of these assets at the end of year : What is the book value of these assets at the end of Year 3?
Define the novel has been called a timeless classic : How to I combine this sentence into a single sentence by using participa, gerund, or infinitive phrase.
Do you think younger customers are often stereotyped : Do you think younger customers are often stereotyped? In what way? How might serving an elderly person be different than serving a young person?

Reviews

Write a Review

Risk Management Questions & Answers

  A project report on mutual funds

This project report speaks of the core and future aspects of Mutual Funds and the present challenges to cope with.

  Evalaute the theoretical option price

Evalaute the theoretical option price

  Risk and return

Investing in the stock market and Risk-free investment and inflation

  Evaluate the gross profit

Evaluate the gross profit

  Discuss concepts of risk and management

Risk lies at all levels of business activity. There are many different kinds of risks within an management as well as ways to manage risks.

  Determine the average risk premium

Here are stock market & Treasury bill percentage (%) returns between 2006 and 2010: Determine the average risk premium

  Hypothetical healthcare organization ratios

Discuss and explain why one should apply caution when using financial ratios for analyzing a healthcare management's current financial position and future viability.

  Discuss role of risk assessment

The financial information has been dominated currently by stories of financial institutions that have mis-measured risk as part of subprime mortgage crisis.

  Calculate maturity risk premium

The real risk-free rate is 3 percent, & inflation is expected to be 3 percent for the next two years. A 2-year Treasury security yields 6.3 percent.

  Selcting best option for portfolio

Suppose you are planning investing in two stocks to form a portfolio. Assume you do not like risk. Which one of given stock combinations will you select for your portfolio?

  Result of systematic or unsystematic risk

It has been a little over one year since the collapse of Lehman Brothers which was the first major event in the downturn of our stock market & economy.

  Determine risk management

Determine risk management? Discuss the importance of risk management in an organization? How does risk management mitigation create value for an organization?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd