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
Interest rate risk
What are the risks of investing in a bond?As compared to other financial assets or securities fixed income securities are considered to be less risky. Though they are less risky, they are not entirely risk-free securities. Therefore, the investment in bonds is a function of various types and sources of risk. The actual return from a bond may differ from the expected return … [Read more...] about What are the risks of investing in a bond?