Systematic risk: Difference between revisions
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imported>Doug Williamson (Expand. Source: BIS webpage http://www.bis.org/bcbs/basel3/b3summarytable.pdf) |
imported>Doug Williamson m (Link with Gearing page.) |
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* [[Beta]] | * [[Beta]] | ||
* [[Capital asset pricing model]] | * [[Capital asset pricing model]] | ||
* [[Gearing]] | |||
* [[Market risk]] | * [[Market risk]] | ||
* [[Non-diversifiable risk]] | * [[Non-diversifiable risk]] | ||
Revision as of 19:44, 21 January 2018
1.
Capital Asset Pricing Model (CAPM).
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'.
2.
Financial markets supervision.
The same as systemic risk.
