No matter what type of finance we discuss the word risk always come up. If you were starting a new business, no matter if you were a proprietorship, a partnership, or a corporation how much risk you think is involved? Why? How do you handle risk both personally and professionally?
What is the difference between diversifiable risk and nondiversifiable risk?
Discuss your comments as to why is it that the market will pay an investor for taking on nondiversifiable risk but will not pay an investor for taking on diversifiable risk?
Diversifiable risk (unsystematic) is the degree of risk relevant to a particular security, but it is limited because of the range of investments that are held within a financial portfolio. Unlike other types of risk that may affect one or m