Explain the Difference Between Systematic and Unsystematic Risk

question 92

Essay

Explain the difference between systematic and unsystematic risk.Also explain why one of these types of risks is rewarded with a risk premium while the other type is not.

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Definitions:

Mammary Glands

Specialized organs in mammals that produce milk to nourish newborns.

Critical Period

A specific time in an organism's life span when it is particularly responsive to certain forms of environmental stimuli.

Sensitive Period

A specific time frame during development when the organism is particularly responsive to environmental stimuli.

Organism's Development

The process of growth and change that an organism undergoes from its origin to maturity.