Answered: Indicate why you agree or disagree with…

Indicate why you agree or disagree with justifications to the following statements: - “An investor should be compensated for accepting unsystematic risk.”

Business Its Legal Ethical & Global Environment

10th Edition

ISBN:9781305224414

Author:JENNINGS

Publisher:JENNINGS

Chapter9: Business Torts

Section9.3: Negligence

Problem 3.2CQ

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Concept explainers

Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.

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Indicate why you agree or disagree with justifications to the following statements:

- “An investor should be compensated for accepting unsystematic risk.”

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