Systematic risk: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Align with qualifications material.) |
imported>Doug Williamson m (Added category) |
||
| Line 20: | Line 20: | ||
* [[Systemic risk]] | * [[Systemic risk]] | ||
* [[Unsystematic risk]] | * [[Unsystematic risk]] | ||
[[Category:Manage_risks]] | |||
Revision as of 09:11, 3 June 2015
Systematic risk is an important concept in the Capital Asset Pricing Model.
Systematic risk means the element of total risk which cannot be eliminated by holding a diversified portfolio of investments.
Under the CAPM, only systematic risk is rewarded with additional returns.
Systematic risk is often quantified by Beta.
Systematic risk is also known as 'market risk' or 'non-diversifiable risk'.
