Systematic Risk and Unsystematic Risk. All investors must know the difference between systematic and unsystematic risk because it will help them to take effective investment decision making. In a broader sense, all types of risk can be categorized into two types; one is a systematic risk which is the non-diversifiable risk and the other is an unsystematic risk or non-systematic … [Read more...] about Systematic Risk and Unsystematic Risk – Meaning and Components
Business risk
Characteristics of Risk
Characteristics of Risk. The characteristics of risk can be summarized as below: Risk measures the changes in the product price. The more debt in the business, the riskier the investment. The larger the margin of safety, the lower the risk. The more variable the return, the riskier the investment. Characteristics of Risk Return Investment implies … [Read more...] about Characteristics of Risk
Distinguish Between Business risk and Financial risk
Distinguish Between Business risk and financial risk. Business risk is the risk that a business faces in not being able to generate adequate income to cover operating expenses. Financial risk is the risk that a business will not be able to generate enough cash flow and income to pay their debts and meet their other financial obligations. Distinguish Between Business risk … [Read more...] about Distinguish Between Business risk and Financial risk