Register

The risk premium of a stock is NOT affected by its ________. unsystematic risk market risk systematic risk undiversifiable risk

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

asked
User Burak Guzel
by
8.2k 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.

answered
User Abhay Saraf
by
7.7k points
← Prev Question Next Question →

Related questions

Ask a Question
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.

Categories

Other Questions

Who was Adam Smith ? Anybody?
What is the best way to describe a stock market?
You sell popcorn during your schools football games. Knowing that the people usually buy more when the price is lower, how would you price your popcorn after halftime?
Link Copied!