What type of risk should the rational (aka not stupid) investor be concerned with? Systematic risk (the stuff we can't squeeze out) which is measured by BETA Unsystematic risk (the stuff we can squeeze out) which we don't measure because we can squeeze it out Total risk which is what a nondiversified investor would face
What type of risk should the rational (aka not stupid) investor be concerned with? Systematic risk (the stuff we can't squeeze out) which is measured by BETA Unsystematic risk (the stuff we can squeeze out) which we don't measure because we can squeeze it out Total risk which is what a nondiversified investor would face
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 8QTD
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What type of risk should the rational (aka not stupid) investor be concerned with?
Systematic risk (the stuff we can't squeeze out) which is measured by BETA
Unsystematic risk (the stuff we can squeeze out) which we don't measure because we can squeeze it out
Total risk which is what a nondiversified investor would face
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