Explain Systematic Risk and Unsystematic Risk

question 188

Essay

Explain systematic risk and unsystematic risk.

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Definitions:

Human Capital

The economic value of a worker's experience and skills, including factors like education, training, intelligence, skills, health, and other things employers value.

Financial Capital

Economic resources measured in terms of money used by entrepreneurs and businesses to buy what they need to make their products or provide their services.

Intellectual Capital

The intangible value of a company's assets such as knowledge, brand, reputation, and employee competence.

Money Market Fund

A type of mutual fund that invests in high-quality, short-term debt instruments, cash, and cash equivalents and is considered to be relatively low risk.