3 Systematic vs Unsystematic Risk Flashcards by Carsten Hood

Q

Purchasing Power Risk

Systematic or Diversifiable? 3.18

A

Systematic / Non-diversifiable

P in PRIME

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Q

Reinvestment Risk

Systematic or Diversifiable? 3.18

A

Systematic / Non-diversifiable

R in PRIME

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Q

Interest Rate Risk

Systematic or Diversifiable? 3.18

A

Systematic / Non-diversifiable

I in PRIME

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Q

Market Risk

Systematic or Diversifiable? 3.18

A

Systematic / Non-diversifiable

M in PRIME

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Q

Exchange Rate Risk

Systematic or Diversifiable? 3.18

A

Systematic / Non-diversifiable

E in PRIME

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Q

Business Risk

Systematic or Diversifiable? 3.18

A

Unsystematic / Diversifiable

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Q

Financial Risk

Systematic or Diversifiable? 3.18

A

Unsystematic / Diversifiable

(risk from firm using debt)

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Q

Default Risk

Systematic or Diversifiable? 3.18

A

Unsystematic / Diversifiable

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Q

Credit Risk

Systematic or Diversifiable? 3.18

A

Unsystematic / Diversifiable

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Q

Regulation Risk

Systematic or Diversifiable? 3.18

A

Unsystematic / Diversifiable

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Q

Sovereignty Risk

Systematic or Diversifiable? 3.18

A

Unsystematic / Diversifiable

(risks with foreign governments)

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