QuestionMay 22, 2025

What are the two types of risk that exist in the stock market? Alpha and beta risk Stock market and bond market risk Cash and derivative risk Material and immaterial risk I don't know

What are the two types of risk that exist in the stock market? Alpha and beta risk Stock market and bond market risk Cash and derivative risk Material and immaterial risk I don't know
What are the two types of risk that exist in the stock market?
Alpha and beta risk
Stock market and bond market risk
Cash and derivative risk
Material and immaterial risk
I don't know

Solution
4.0(275 votes)

Answer

Systematic risk and unsystematic risk Explanation 1. Identify the types of risk in the stock market The two main types of risk in the stock market are **systematic risk** and **unsystematic risk**. Systematic risk affects the entire market and cannot be diversified away, while unsystematic risk is specific to individual stocks or sectors and can be reduced through diversification.

Explanation

1. Identify the types of risk in the stock market<br /> The two main types of risk in the stock market are **systematic risk** and **unsystematic risk**. Systematic risk affects the entire market and cannot be diversified away, while unsystematic risk is specific to individual stocks or sectors and can be reduced through diversification.
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