Question: The name given to the risk that cannot be diversified away by adding additional assets to an investment portfolio since it results from the systematic

The name given to the risk that cannot be diversified away by adding additional assets to an investment portfolio since it results from the systematic events and factors that affect all investments.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Ch 02: Assignment - Risk and Return: Part 1 2. Basic concepts Aa Aa E Match the terms relating to the basic terminology and concepts of risk and rates of return on the left with the descriptions of...

Descriptions Terms The mean of the probability distribution of an investment's possible retums, and the return expected to be realized from owning it Beta coefficient The name given to the risk that...

Ch 02: Assignment - Risk and Return: Part 1 Term Answer Risk A Expected rate of return B Description The rate of return expected to be realized from an investment, calculated as the mean of the...

Term Answer Description A. The general term that describes the portion of an asset's total expected return that is greater than the return earned on the market's risk-free rate Expected rate of...

The term applied to the risk of an asset that is measured by the standard deviation of the assets expected returns.The potential for variability in the possible outcomes associated with an...

Chapter 8 Assignment Descriptions Terms The portion of an asset's total expected return required by investors as compensation for assuming the additional risks associated with the security, the...

Ch 0 2 : Assignment - Risk and Return: Part I - Pre class Description Term The rate of return expected to be realized from an investment, calculated as the mean of the probability distribution of its...

The term applied to the risk of an asset that is measured by the standard deviation of the asset s expected returns. The potential for variability in the possible outcomes associated with an...

Descriptions Terms The name given to the risk that cannot be diversified away by adding additional assets to an investment portfolio since it results from the systematic events and factors that...

Match the terms relating to the basic terminology and concepts of risk and rates of return the descriptions of the terms. Read each description carefully and select the correct term. These are not...

The one-dimensional system of mass M with constant properties and no internal heat generation shown in the figure is initially at a uniform temperature T i . The electrical heater is suddenly...

On January 1, 2021, Crown Company sold property to Leary Company. There was no established exchange price for the property, and Leary gave Crown a $4,000,000 zero-interest-bearing note payable in 5...

The private equity market is composed of individuals, venture capital firms and private equity funds. True False Clear selection

5. The Acme Corporation produces :41 and y units of goods Alpha and Beta, respectively. :1. Use a production possibility frontier to explain how the willingness to produce more or less Alpha depends...

What process do you have in place for development planning?

How well are senior managers briefing and debriefing the individuals that attend development events

What guidance are you giving managers on pre- and post- briefing?