Systematic risk: Difference between revisions

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In the Capital Asset Pricing Model, same as Market risk.
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'.
 
 


== See also ==
== See also ==
* [[Beta]]
* [[Capital asset pricing model]]
* [[Capital asset pricing model]]
* [[Market risk]]
* [[Market risk]]
* [[Non-diversifiable risk]]
* [[Systemic risk]]
* [[Systemic risk]]
* [[Unsystematic risk]]
 

Revision as of 09:23, 1 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'.


See also