Differentiate between systematic and unsystematic risk. Which of these is more important to the average investor? Why?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 83% (6 reviews)
Systematic risk is that portion of a stocks risk or variability ...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Personal Finance Turning Money into Wealth
ISBN: 978-0133856439
7th edition
Authors: Arthur J. Keown
Question Posted:
Students also viewed these Corporate Finance questions
-
What is risk? What is the difference between systematic and unsystematic risk?
-
What is the difference between systematic and unsystematic risk? Provide one example of each. Can both systematic and unsystematic risks be diversified? Why or why not?
-
Beta and standard deviation differ as risk measures in that beta measures: a. Only unsystematic risk, while standard deviation measures total risk. b. Only systematic risk, while standard deviation...
-
T-bills currently yield 3.9 percent. Stock in Nina Manufacturing is currently selling for $63 per share. There is no possibility that the stock will be worth less than $61 per share in one year. a....
-
Cordona Corp. has bonds outstanding that will mature twelve years from now. These bonds are currently quoted at 110 percent above par value. The issue makes annual payments of $80 on $1,000 bond face...
-
A satellite single-axis attitude control system can be represented by the block diagram in Figure CP2.5. The variables k, a, and b are controller parameters, and J is the spacecraft moment of...
-
Outline employee rights under OSHA and how these rights apply to the hospitality industry. (pp. 379-382)
-
A garage band wants to hold a concert. The expected crowd is 3,000. The average expenditure on concessions is $ 15. Tickets sell for $ 10 each, and the bands profit is 80% of the gate and concession...
-
Sampson Company provided the following budgeted information for the month of May: Sales $58,500 Direct materials cost $29,700 Direct labor cost $14,300 Manufacturing overhead cost $7,600 Operating...
-
Create the logic for a Mad Lib program that accepts five words from input, then creates and displays a short story or nursery rhyme that uses them.
-
Explain the difference between investing and speculating. Give an example of each.
-
Why might investors not be willing to take risks with their investment portfolios even though they take risks elsewhere? What investment concepts might help them be more willing to take an...
-
Verify Theorem 1 for Ф* (u, v) = uv, w = f(z) = ez, and D: x < 0, 0 < y < , Sketch D and D*.
-
Scenario : Wanda, a BCBA, is updating an intervention plan for a leaner on her caseload to submit for insurance funding authorization. Part of the plan includes the completion of an adaptive...
-
a) how can your company accommodate generational or gender difference within your company ? b) how can your company accommodate communication and or language difference within your company ?
-
3. Consider the following data for two catalysts, A and B. The temperature is 25 C and the reaction occurs at standard conditions. a. Make a Tafel plot and determine the Tafel slope. Estimate the...
-
How consumption can be helpful in facilitating the construction of your identity? Explain the ways in which the symbolic meanings, connected with your consumption choices are important to you? Is...
-
Cataumet Boats, Inc. Jaime Giancola had just completed the first half of her MBA program and wanted to work on a project during the summer that would give her some practical experience applying what...
-
ABC Ltd has a market capitalization of 1 billion. It has 100 million in cash and the balance 900 million in other assets. There are 10 million shares outstanding, each valued at 100. What will be the...
-
Write each fraction as a percent. 7 50
-
CONTINUING PROBLEM: FRONT ROW ENTERTAINMENT} While Front Row Entertainment was having considerable success in signing artists and promoting concerts, Cam and Anna still had a few ideas to grow their...
-
Calculate the NPV given the following cash flows if the appropriate required rate of return is 10%. YEAR CASH FLOWS 0.............. -$ 60,000 1.............. 20,000 2.............. 20,000...
-
Calculate the NPV given the following cash flows if the appropriate required rate of return is 10%. YEAR CASH FLOWS 0.............. -$ 60,000 1.............. 20,000 2.............. 20,000...
-
Calculate the NPV given the following cash flows if the appropriate required rate of return is 10%. YEAR CASH FLOWS 0.............. -$ 60,000 1.............. 20,000 2.............. 20,000...
-
XF Ltd. Is an expanding private company in the electric trade. Accounts preparing in January 2019 included the following information: Profit Statement for the year ended 31 st December 2018 Kshs.000...
-
Check On June 15, 2021, Sanderson Construction entered into a long-term construction contract to build a baseball stadium in Washington D.C., for $340 million. The expected completion date is April...
-
Q.1 Bassem Company purchased OMR420,000 in merchandise on account during the month of April, and merchandise costing OMR $350,000 was sold on account for OMR 425,000. Required: 1. Prepare journal...
Study smarter with the SolutionInn App