Question
Systematic risk and non-systematic risk
Answer :
Word Count : 265
In financial economics, risk refers to the uncertainty associated with the return on an investment. Broadly, risks are categorized into two types: systematic risk and non-systematic risk. Systematic risk, also known as market risk or undiversifiable risk, affects the entire market or a large segment of it. It arises from macroeconomic factors such as changes in interest rates, inflation, recessions, political instability, or natural disasters. Since ______ __________ ________ ______ _________ _____ ___ ___ ___ ___.
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In financial economics, risk refers to the uncertainty associated with the return on an investment. Broadly, risks are categorized into two types: systematic risk and non-systematic risk. Systematic risk, also known as market risk or undiversifiable risk, affects the entire market or a large segment of it. It arises from macroeconomic factors such as changes in interest rates, inflation, recessions, political instability, or natural disasters. Since ______ __________ ________ ______ _________ _____ ___ ___ ___ ___.
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