Systematic risk

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Revision as of 09:23, 1 June 2015 by imported>Doug Williamson (Align with qualifications material.)
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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