Difference between revisions of "Market risk"
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According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | ||
:[[Market risk]]. That part of a security's total risk that cannot be eliminated by diversification; measured by the beta coefficient. | :[[Market risk]]. That part of a security's total risk that cannot be eliminated by diversification; measured by the beta coefficient. | ||
| + | According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | ||
| + | :[[Market risk]]. The risk that remains in a portfolio after diversification has eliminated all company-specific risk. This risk is also known as nondiversifiable or systematic or beta risk. | ||
| + | :[[Market risk]] ([[beta risk]]). Considers both firm and stockholder diversification. It is measured by the project's beta coefficient. | ||
==Related concepts== | ==Related concepts== | ||
Latest revision as of 04:18, 2 November 2019
Market risk is a risk that part of a security's total risk that cannot be eliminated by diversification; measured by the beta coefficient.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Market risk. That part of a security's total risk that cannot be eliminated by diversification; measured by the beta coefficient.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Market risk. The risk that remains in a portfolio after diversification has eliminated all company-specific risk. This risk is also known as nondiversifiable or systematic or beta risk.
- Market risk (beta risk). Considers both firm and stockholder diversification. It is measured by the project's beta coefficient.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
