Systematic Risk Principle

0.01 sec.

Systematic risk principle

Only the systematic portion of risk matters in large, well-diversified portfolios. Thus, expected returns must be related only to systematic risks.

A theory stating that unsystemic risks are irrelevant in properly diversified portfolios. According to this principle, only systemic risks affect the expected return on such a portfolio, because the process of diversification eliminates the risk attached to any particular company, and only the systemic risks endemic to the wider economy may affect the portfolio.

Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		Financial browser	?		Full browser	?
No references found			Syndique Synergistic Effect Synergy Synthetic Asset Synthetic Call Synthetic Collateralized Debt Obligation Synthetic Convertible Synthetic Forward Position Synthetic Futures Contract Synthetic Index Synthetic Investment synthetic lease Synthetic Put Synthetic Short Sale Synthetic Stock Synthetic System Synthetics SYP Syrian Pound System for Electronic Document Analysis and Retrieval System Noise Systematic Systematic Investment Plan Systematic Return Systematic Risk Systematic Risk Principle Systematic Withdrawal Systematic Withdrawal Plan Systemic Risk Systems Safety Engineering Systems theory SZ SZL SZSE Component Index T T bill T+1 T+1 (T+2,T+3) T+2 T+3 T-account T-Period Holding-Period Return T-Rex Fund T. Boone Pickens TA-100 Index TAA TAB Tabeliao table funding Table of Denial Orders Tableau d'amortissement			Systematic Instruction in Phoneme Awareness, Phonics and Sight Words Systematic Investment Plan Systematic Investment Plan Systematic Investment Plans systematic joints Systematic Land Information Management Systematic Layout Planning Systematic Literature Review Systematic Lymph Node Dissection Systematic Manipulation of Social and Psychological Influence Systematic Mechanisms Limited Yield Systematic Multiple Level Observation of Groups systematic name systematic name systematic name systematic name systematic name Systematic naming Systematic Nomenclature Systematic Nurses Observation of Psychopathology Systematic Payout Systematic Payout Option Systematic Planning, Integrated Defense, Engineering Research Charts Systematic Programming Workshop Systematic Repeat Accumulate Coding Systematic Return Systematic review Systematic review Systematic Reviewing in Laboratory Medicine Systematic risk Systematic Risk Principle Systematic Risks Systematic Sales Dialogue Systematic sample Systematic sampling Systematic sampling Systematic sampling Systematic Sclerosis Systematic Screening for Behavior Disorders systematic secret observation of the words and conduct of others Systematic Software Engineering systematic support systematic tabulation Systematic Teaching and Measuring Mathematics Systematic Technical Accuracy Review Systematic Technique to Analyze and Manage Pennsylvania Pavements Systematic Terminators of Religion Systematic Test and Evaluation of Metal Detectors Systematic Testing of Realtime Embedded Software Systems Systematic theologian systematic theologians Systematic theology systematic training Systematic Training for Effective Parenthood Systematic Training for Effective Parenting Systematic Training for Effective Teaching Systematic Training of Effective Personal Social Skills

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup

Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.