Asked by Anthony Tortora on Jun 07, 2024
Verified
Provide a definition for systematic risk principle.
Systematic Risk Principle
A principle stating that investors need to be compensated for taking on increased levels of undiversifiable risk.
- Comprehend the principle of diversifiable and non-diversifiable risk.
Verified Answer
EW
Expert WritersJun 11, 2024
Final Answer :
A risk that influences a large number of assets. Also called market risk.
Learning Objectives
- Comprehend the principle of diversifiable and non-diversifiable risk.