Examlex
is environmental scanning? How is it used in marketing?
Systematic Risk
The inherent risk that affects the entire market or a certain segment of the market, often influenced by factors like political, economic, and interest rate changes that cannot be mitigated through diversification.
Firm-specific Risk
The type of risk that affects a particular company or industry, as opposed to systemic risk, which affects the entire market.
Correlation Coefficient
A statistical measure that describes the extent to which two variables fluctuate together, ranging from -1 (perfect negative correlation) to +1 (perfect positive correlation).
Covariance
A measure of the degree to which two variables move in relation to each other, indicating the direction of their relationship.
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