What are different types of Risks?
Answer Posted / uma prasad
Risks are of two types:-
1. Systematic risk-
It occurs due to some rxternal factors such as direct
compitition, govt. policies, inflation, interest-rate,
change in legal structure & tax etc. This type of risk
cannot be reduced & prediced. It affects the entire market.
This is also known as uncontrollable or undiversified risk.
2. Unsystematic Risk-
It occurs due to some internal factors such as labour
strike, lock-out, capital mobilization, financial decision,
trade union, and company & management policy etc. this is
also known as controballable or diversifiable risk or
specific ris because we can reduce the risk by properly
diversifying holdings.
| Is This Answer Correct ? | 2 Yes | 3 No |
Post New Answer View All Answers
What are the advantages of 'debit card'?
Do you know the difference between shares and debentures?
What are the various steps government take to curb inflation?
Where is NABARD office located?
What is the difference between our checking and savings account products?
How will management improve the banking services?
What are the key features of Union Budget 2017?
Name Any Two Types of Shares?
Do you have any idea about Employees Pension Scheme?
What is 'securities transaction tax (stt)'?
What attracted you towards banks?
What are the different systems of accounting?
What percent of FDI is allowed in Single Brand Retailing and Multi Brand Retailing?
What is debtors turnover ratio?
What were the headlines in the Financial Times today?