FUND. OF FINANCIAL MGMT (LL)--W/ACCESS
FUND. OF FINANCIAL MGMT (LL)--W/ACCESS
9th Edition
ISBN: 9781337948982
Author: Brigham
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Chapter 12, Problem 8Q
Summary Introduction

To identify: The reason for the focus on stand-alone risk.

Introduction:

Market Risk:

Beta risk is a systematic risk that can be reduced through a diversified portfolio or investment projects. It is based on the market related and known as market risk.

Stand-Alone Risk:

Stand-alone risk is based on the assumption that only one project is available with the company and the single stock is available for the investors. Therefore, the stand-alone risk cannot be diversified.

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Chapter 12 Solutions

FUND. OF FINANCIAL MGMT (LL)--W/ACCESS

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