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Saturday, 1 December 2018

Systematic risk and un-systematic risk

Risk can be classified into systematic risk      and      un-systematic risk.
   Systematic risk is also known as market risk. Systematic risk is common for all types of securities.This risk affects all securities in the market.This risk is also known as Non- Diversfiable risk. We cannot diversify the Systematic risk. Systematic risk is represented by Beta.
Un-systematic risk is also known as Diversifiable risk.This risk refers to the risk relating to particular industry or individual firm.This risk can be diversified.We can diversify the risk by investing in different industries securities.
    
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