Q9: What is the difference between un-systematic and systematic risk? Show graph! Give Examples. Unsystematic Risk: Systematic...

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Finance

Q9: What is the difference between un-systematic andsystematic risk? Show graph! Give Examples.

Unsystematic Risk: Systematic Risk:

Graph:

--What type of risk can be diversified away? How wouldyou do this? What statistical measures would you have to look at?Explain!

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3.6 Ratings (260 Votes)
Systematic risk is the risk that is associated with the entiremarket while unsystematic risk is the risk that is associated witha particular industry or a particular security Systematic risk isuncontrollable and hence is not diversifiable while unsystematicrisk can be controlled and    See Answer
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