Total Risk Total risk = systematic risk + unsystematic risk The standard deviation of returns is a measure of total risk For well-diversified portfoli
{"Image DocumentName": "Systematic Risk Principle", "Image ImageDescription": "There is a reward for bearing risk. There is not a reward for bearing risk unnecessarily. The expected return on a risky asset depends only on that asset\u2019s systematic risk since unsystematic risk can be diversified away.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}