Unsystematic Risk Finance Quizlet. A. They can be reduced or completely eradicated through diversificat

A. They can be reduced or completely eradicated through diversification. D) dependent upon a company's capital structure. E. unsystematic C. b) market risk. C) inversely related to the cost of equity. Unsystematic market risk (business, financial, liquidity, exchange rate) The ability to sell an asset quickly at a fair price is associated with Liquidity risk The general purpose of a market indicator Study with Quizlet and memorize flashcards containing terms like You are considering investing in Ford Motor Company. Which of the following are examples of unsystematic risk? I. DEVIATION FORMULA, unsystematic risk (Independent) and more. d) Study with Quizlet and memorize flashcards containing terms like Explain Systematic Risk, What does the acronym P. What does this imply about CSH's equity beta compared to KSM's equity Study with Quizlet and memorize flashcards containing terms like Unsystematic risk can be defined by all of the following except: a) diversifiable risk. Systematic risk changes over time, Unsystematic Risk, or “idiosyncratic risk”, refers to the risk inherent to a particular company or industry, rather than from the broader economy and financial markets. Systematic risk affects the entire market and can't be avoided, while unsystematic risk is specific to individual companies The total risk for a well-diversified stock portfolio is basically equivalent to systematic risk. Therefore, the standard 9) Financial risk is: A) the risk inherent in a company's operations. E) Study with Quizlet and memorize flashcards containing terms like What is the name?, Name the risks, What does it mean that this type of risk is diversifiable? Diversified investments will . I. While an investor expects to be rewarded for bearing risk, one is not rewarded for taking on Systematic risk refers to the risk associated with specific industries, while unsystematic risk refers to the risk associated with specific geographical areas. Learn about how to identify examples of unsystematic risk, and discover how many can be traced to entrepreneurial error or political and Learn about unsystematic risk in investing, manage it with strategies, and understand its impact on portfolio construction and Systematic risk is defined as: any risk that affects a large number of assets. unnatural B. c) unique risk. , Users of the CAPM should be aware of some of Study with Quizlet and memorize flashcards containing terms like KMS has a higher standard deviation than CSH. Risk in investing comes in two flavors: systematic and unsystematic. diversifiable D. increases systematic risk reduces unsystematic risk reduces systematic risk increases unsystematic risk reduces unsystematic risk The risk associated with dispersion around an Terms in this set (15) key takeaway #2 -the risk of an individual security is composed of both systematic risk + unsystematic risk -because investors can easily diversify, or reduce exposure Study with Quizlet and memorize flashcards containing terms like Unsystematic risk can be defined by all of the following except:, When running the regression analysis where Study with Quizlet and memorize flashcards containing terms like Business Risk, Regulatory Risk, Legislative Risk and more. R. Study with Quizlet and memorize flashcards containing terms like In broad terms, why is some risk diversifiable? Why are some risks nondiversifiable? Does it follow that an investor can Study with Quizlet and memorize flashcards containing terms like A stock standard deviation indicates how the stock affects the riskiness of a diversified portfolio. An investor cannot control or avoid systematic risk, which is influenced by broader economic, political, or global factors, but they can manage non-systematic risk by carefully Unsystematic: They are used for specific companies and investments. Risk Study with Quizlet and memorize flashcards containing terms like An increase in the expected future inflation rate has the effect of _______. M. They are also called residual risk. mean when it comes to systematic risk?, How can risks to Study with Quizlet and memorize flashcards containing terms like When an investor is diversified only ________________ risk matters. Unsystematic risk can be defined by all of the following except: Study with Quizlet and memorize flashcards containing terms like True or false: the tendency of individual stock prices to move together as one source of systematic risk, True or false: Finance The systematic risk principle states that the expected return on a risky asset depends only on which one of the following? Unique risk Unsystematic risk Diversifiable risk Market risk Study with Quizlet and memorize flashcards containing terms like Systematic risk is also known as, What does PRIME stand for?, What is purchasing power risk ? and more. Study with Quizlet and memorize flashcards containing terms like Unsystematic Risk, Business Risk, Obsolescence Risk and more. Study with Quizlet and memorize flashcards containing terms like The standard deviation, STD. B) a type of unsystematic risk.

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