Types of risk compared to market risk


Systematic risk is typically referred to as "market risk", while unsystematic risk is risk that refers to a specific risk associate to a particular asset.

If you are a company that is concerned about investing in assets that have a higher than market rate of return, what type of risk is the most critical to manage in the selections of an appropriate investment - systematic or unsystematic? In your answer, note what variables affect your expected return from both types of risk compared to market risk.

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Finance Basics: Types of risk compared to market risk
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