Register
The risk premium of a stock is NOT affected by its ________. unsystematic risk market risk systematic risk undiversifiable risk
113k views
1 vote
The risk premium of a stock is NOT affected by its ________. unsystematic risk market risk systematic risk undiversifiable risk

User Burak Guzel
by
7.5k points

1 Answer

5 votes

  • The role of diversification is to narrow the range of possible outcomes. Unsystematic risk does not factor into an investment 's risk premium, since this type of risk can be diversified away.

User Abhay Saraf
by
7.0k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

8.2m questions

10.9m answers

Other Questions

Who was Adam Smith ? Anybody?
What can turn igneous rock into sediment?
In what way did the GI Bill contribute to the growth of professional and white-collar jobs ? A.by providing US laborers with new job-training programs B.by giving US veterans assistance to purchase a new
What is meant by data mining ?
What is the best way to describe a stock market?
Link Copied!