Investment Risk Flashcards
1
Q
What is systematic risk?
A
Systematic risk means the possibility of loss associated with the whole market or market segment.
2
Q
What is unsystematic risk?
A
Unsystematic risk means risk associated with a particular industry or security.
3
Q
What’s the difference between systematic and unsystematic risk?
A
Systematic risk is uncontrollable whereas the unsystematic risk is controllable.
