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Identify the Three Types of Systemic Errors Organizations Often Make

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Essay

Identify the three types of systemic errors organizations often make that undermine their ethics efforts.


Definitions:

Market Return

The total return of the entire stock market or a specific market segment, encompassing capital gains and dividends over a specified period.

Systematic Risk

The risk inherent to the entire market or a segment thereof, also known as market risk, which cannot be eliminated through diversification.

Stock Market

A public market for buying, selling, and trading stocks (shares) of publicly-held companies.

Alpha

A measure of the excess return of an investment relative to the return of a benchmark index.

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