29 November 2013
Systematic risk is the risk associated with aggregate market and it is due to factors that affect the entire market.
Some of the factor is: recession, Wars, Change is Taxation provision, foreign investment policy, Inflation etc.
This risk is beyond the control of investor and hence cannot be mitigated through diversification.
"We can say that the risk of failing CA Student due to the reduced “%” result by ICAI is Systematic risk for CA Student and it cannot be reduced by students own effort."
29 November 2013
Unsystematic risk is the risk specifically associated with company/industry and it is due to factors specific to a company/industry.
Some of the factor is: abour strike, Product category, marketing strategy, research & development etc.
Unsystematic risk can be mitigated through portfolio diversification.
We can say that the risk of failing CA Student due to inadequate and unbalanced preparation of all subjects is Unsystematic risk for CA Student and it can be reduced.
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