Systematic Risk – Meaning, Types And How To Measure It
Systematic risk occurs due to macroeconomic factors. It is also called market risk or non-diversifiable or volatility risk as it is beyond the control… Read Article
Types of Risks
Risk-Return Tradeoff
Risk-Return Tradeoff is the relationship between the risk of investing in a financial market instrument vis-à-vis the expected or potential return from the same.Risk-Return… Read Article
Unlevered Beta
Unlevered Beta DefinitionIt is a risk measurement metric that compares the risk of a company without any debt to the risk of the market.… Read Article
Beta Coefficient in Finance
Beta DefinitionBeta is a measure of volatility or risk of a stock in relation to market risk. Also known as the beta coefficient (β),… Read Article
Systematic Vs Unsystematic Risks
Definition of Systematic RiskSystematic risk is also referred to as non-diversifiable risk or market risk. Systematic risk is the fluctuations in the returns on… Read Article
Credit Risk
Credit risk is the risk of non-payment of a loan by the borrower. It is a type of Financial Risk. In other words, we… Read Article
Cost of Equity – Capital Asset Pricing Model (CAPM)
The cost of equity is estimated using Sharpe’s Model of Capital Asset Pricing Model. The model finds the cost of capital by establishing a… Read Article