Systematic risk in connection with on the Capital ate Pricing Model (CAPM) developing financialscientific theories the actual market risk called, thus risks, which cannot be reduced by a more optimal diversification of the Wertpapierportfolios.

In accordance with CAPM contain each security in a Portfolio systematic and unsystematical risk. Both together are called total risk. Systematic risks are evaluated by means of the beta factor \ beta. Investments without risk have here \ beta = 0.

The systematic risk is the basis, on which an investor expresses a certain net yield expectation, since he wants to have also accordingly more highly recompensed a higher risk. Typical examples of systematic risk are changes of net yield by exogenous influences on the capital market such as disasters, changes in the political surrounding field or changes of the market interest.

Articles in category "Systematic risk"

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• Capital Asset Pricing Model (CAPM)
  CAPM decomposes a portfolio's risk into systematic and specific risk. Systematic risk is the risk of holding the market portfolio. As the market moves, ...


• Systematic Risk
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• systematic risk Definition
  systematic risk - definition of systematic risk - Risk which is common to an entire class of assets or liabilities. The value of investments may decline ...


• Systemic risk - Wikipedia, the free encyclopedia
  Systemic risk describes the likelihood of the collapse of a financial system, ... Systemic risk should also be carefully distinguished from systematic risk, ...