Describe the general types of risk in detail-02151
This subjective question is related to the book/course
vu mgt611 Business & Labor Law.
It can also be found in
vu mgt611 Mid Term Solved Past Paper No. 1.
Question 1: Describe the general types of risk in detail.
Answer:
Two general types is Systematic risk and non systematic risk.
(1) Systematic (general) risk is a risk that influences a large number of assets.
Variability in a security's total returns that is directly associated with overall movements in the general market or economy is called systematic (market) risk.
2) Nonsystematic (specific) risk is Sometimes referred to as "specific risk". It's risk that affects a very small number of assets.
An example is news that affects a specific stock such as a sudden strike by employees.
