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Systematic risk principle |
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Systematic risk principleOnly the systematic portion of risk matters in large, well-diversified portfolios. Thus, expected returns must be related only to systematic risks.Systematic risk principle Similar MatchesSystematic withdrawal planSystematic withdrawal planA provision of certain mutual funds to pay out to the shareholder specified amounts after specified periods of time. SystematicSystematicCommon to all businesses. Unsystematic riskUnsystematic riskAlso called the diversifiable risk or residual risk. The risk that is unique to a company such as a strike, the outcome of unfavorable litigation, or a natural catastrophe that can be eliminated through diversification. Related: Systematic risk. Systematic riskSystematic riskAlso called undiversifiable risk or market risk. Systematic investment planSystematic investment planAn approach involving regular investments in order to take advantage of dollar-cost averaging. Further SuggestionsSystematic ReturnNonsystematic risk |
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