--%>

Indirect world systematic risk

Define and explain indirect world systematic risk.

E

Expert

Verified

Indirect world systematic risk is described as the covariance between non tradable asset and world market portfolio which is provoked by the tradable assets. In presence of the internationally tradable assets, non tradable assets can be priced partly through the indirect world systematic risk and partly through the pure domestic systematic risk.

   Related Questions in Financial Accounting

  • Q : What bid price per widget should you

    You are required to submit a bid to supply 200,000,000 widgets per year to the State of Illinois for the next five years. Your company has an idle tract of real estate that cost $1,500,000 ten years ago; if your company sold the land

  • Q : Meso and Macro level theories of

    Identify and elucidate three meso- and/or macro-level theories about deviance.

  • Q : Ppe Question 3 The following

    Question 3 The following information is taken from the financi al statements of an entity: 20x6 20x5 Property, plant and equipment $4,100,000 $3,600,000 Accumulated depreciation (1,400,000) (1,050,000) Depreciation expense 650,000 Gain on disposal of PPE 35,000 The asset disposed of had

  • Q : What is Arbitrage Describe the term

    Describe the term Arbitrage.

  • Q : Parallel and back-to-back loan

    Distinguish between the parallel loan and the back-to-back loan.

  • Q : Case study of harvesting a tree

    Recently, a friend accused her neighbor of harvesting a tree (sapling of balsam fir, Abies balsamea) from her land without permission. Her neighbor claims that he bought it from a Christmas tree plantation (growing in a clearing down the road).  Your friend says

  • Q : Meaning of Bill and Hold What is the

    What is the meaning of Bill and Hold in Accounting? Briefly describe it.

  • Q : Function of budgetary control play in

    Describe the function of budgetary control play in cost control? And also write down the requirements for its triumphant execution?

  • Q : Standard costing is a separate system

    Wheather it is correct or not that standard costing is a separate system in accounting?

  • Q : Factors considering before investing

    Being an investor, what are all factors you would consider before investing within the emerging stock market of developing country?