Difference between revisions of "Market risk"

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(Created page with "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 [...")
 
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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.
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According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]],
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:[[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.
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:[[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

Related lectures