Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. what are the two components of total risk? which c

What are the two components of total risk? Which component is part of the risk-return relationship?...

70.2K

Verified Solution

Question

Finance

What are the two components of total risk? Which component ispart of the risk-return relationship? Why?

(Please thoroughly explain the the 2 components firm-specificrisk and market risk. )

Answer & Explanation Solved by verified expert
3.9 Ratings (491 Votes)
Firm specific risk is also called as unsystematic risk This is a risk which is uniquely present for a firm or an organization Eg Litigation labour strikes etc This kind of risk can be eliminated    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

What are the two components of total risk? Which component ispart of the risk-return relationship? Why?(Please thoroughly explain the the 2 components firm-specificrisk and market risk. )

Other questions asked by students

Q

Culver’s Custom Clothing (CCC) sells branded clothing to resortsand corporations. The company’s comparative financial...

Accounting
Q

recognise the value of working systematically and keeping a record of the work we do. see how...

Advance Math
Q

Using the Line-Angle structure of morphine, circle or highlight all polar regions of the molecule. Make...

Chemistry
Q

A block of mass M is kept on a frictionless horizontal table A body of...

Physics
Q

An oil drop of mass 50 mg and of charge 5 C is just balanced...

Physics
Q

A single six sided die is rolled Find the probability of rolling an odd number...

Basic Math
Q

Z has standard normal distribution Find k such

Basic Math
Q

Find the solution of the exponential equation 100(1.03)2 = 500, 000 in terms of logarithms,...

Algebra
Q

NAME DIRECTIONS: Choose the BEST answer to each question and place your selection on the...

Accounting
Q

Assume the following data for December relates to, XYZ, an accounting firm. What is the...

Accounting
Q

Assume a company's estimated sales for January, February, and March are 43,000 units, 44,000 units,...

Accounting
Q

2. [3 points] Assume the initial margin on crude oil is $4,980 per contact and...

Finance