Risk:
Risk involves the chance that the actual return of an investment shall vary from the anticipated return. It includes the chances of losing either some or the entire original amount invested. The different forms of risk can be determined by determining the standard deviation of the historical returns or the average returns of a particular investment.
Systematic risk:
Systematic risk refers to the risk that cannot be removed considering the fact that such type of risk is non-diversifiable in nature. Systematic risk is the risk associated with an entire market or a segment of a market as a whole. It is uncontrollable in nature and is affected by a number of external factors while unsystematic risk is affected only by the internal factors of a company.
To determine:
Whether a grocery store or an airlines company is more exposed to systematic risk.
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FUND. OF CORPORATE FINANCE W/ACCESS >I
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