Another idea: Asset Management. How do you build your portfolio? I think there are not that much videos regarding professional Asset Management on UA-cam.
I dont mean to be so offtopic but does any of you know a way to get back into an Instagram account?? I stupidly forgot my account password. I would love any assistance you can offer me
A little off but don't worry most people get it confused. I wanted to divide risk into its two segments to identify that beta has nothing to do with unsystematic risk. Read the first slide again, "What beta captures is the systematic risk of the company relative to the market." The thinking is that unsystematic risk can be eliminated through diversification. As more companies are held in one portfolio, the unsystematic risk that may arise will only impact a small portion of the overall portfolio. With beta, the systematic risk affects the entire portfolio and cannot be eliminated. This is the market risk that is focused on in the CAPM formula. A beta above 1 means that the company has a higher SYSTEMATIC risk than the market which has a beta of 1.
Thank you!
Another idea: Asset Management. How do you build your portfolio? I think there are not that much videos regarding professional Asset Management on UA-cam.
Ohhhhhhh I like that...........on the list it goes. Keep commenting with video suggestions. Hopefully more people can join in.
I dont mean to be so offtopic but does any of you know a way to get back into an Instagram account??
I stupidly forgot my account password. I would love any assistance you can offer me
?? If the Beta is >1 it has a higher UNSYSTEMATIC (not market but individual) risk??? Not systematic as you say? Or did I get it wrong?
A little off but don't worry most people get it confused. I wanted to divide risk into its two segments to identify that beta has nothing to do with unsystematic risk. Read the first slide again, "What beta captures is the systematic risk of the company relative to the market."
The thinking is that unsystematic risk can be eliminated through diversification. As more companies are held in one portfolio, the unsystematic risk that may arise will only impact a small portion of the overall portfolio. With beta, the systematic risk affects the entire portfolio and cannot be eliminated. This is the market risk that is focused on in the CAPM formula.
A beta above 1 means that the company has a higher SYSTEMATIC risk than the market which has a beta of 1.
Can beta be negative?