Please define

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Dhiraj kumar

Dhiraj kumar (Querist)
Follow

26 November 2013 What is systematic and unsystematic risk ?

Thanks
Dhiraj Kumar

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

29 November 2013 Systematic risk is the risk associated with aggregate market and it is due to factors that affect the entire market.

Some of the factor is: recession, Wars, Change is Taxation provision, foreign investment policy, Inflation etc.

This risk is beyond the control of investor and hence cannot be mitigated through diversification.

"We can say that the risk of failing CA Student due to the reduced “%” result by ICAI is Systematic risk for CA Student and it cannot be reduced by students own effort."

Message likes : 1 times

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

29 November 2013 Unsystematic risk is the risk specifically associated with company/industry and it is due to factors specific to a company/industry.

Some of the factor is: abour strike, Product category, marketing strategy, research & development etc.

Unsystematic risk can be mitigated through portfolio diversification.

We can say that the risk of failing CA Student due to inadequate and unbalanced preparation of all subjects is Unsystematic risk for CA Student and it can be reduced.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now