Systematic risk is measure that quantifies volatility for a company but only the piece that is related to the Market, or factors that represent the Market, meaning it is un-correlated with the company's specific risk. It is separated from specific risk in a single-variable (Market) or multi-variable (factors) linear regression. It can be computed for any of the three timeframes: historical, expected or forecast.
Synonyms: non-diversifiable risk, market risk, common factor risk, common source risk.
Click box for answer.
systematic risk is also
called non-diversifiable, common factor and market risk?
Eve: Yep, there's a lot of job security in risk management.
Many terms have 4-5 minute videos showing a derivation and explanation. If this term had one, it would appear here.
Videos can also be accessed from the YouTube Channel.
If this term had a video, the script would be here.
Our trained humans found another term in the category risk decomposition you may find helpful.
For links to all glossary terms and videos click the Outline button below.
Subscribe today so you'll be notified when we post new risk videos.
Next we cover the quotes and pricing of T-Bills . Click Next.