Systematic & Unsystematic Risk: Definition & Examples


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What is the term for risk associated with the entire stock market?

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1. What is the term for risk associated with a single stock?

2. Bernie is considering investing $1,000 in a stock with a beta of 1.5. If the value of the broader market increases by 4% this year, how much should Bernie anticipate his investment to be worth at the end of the year?

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About This Quiz & Worksheet

Risk is common in the stock market, and you can evaluate your understanding of it with this worksheet and interactive quiz. Practice questions will inquire regarding types of risk, investor protection and measurements of prices.

Quiz & Worksheet Goals

Students will be tested on the following topics:

  • Measurement of stock prices in relation to market
  • Risk associated with entire stock market
  • Single stocks involving risks
  • Investor protection
  • Beta and diversification

Skills Practiced

In this work, you will exercise your ability in:

  • Information recall - access the knowledge you've gained regarding risk associated with single stocks
  • Interpreting information - verify that you can read information regarding investor protection and interpret it correctly
  • Information recall - access the knowledge you've gained regarding diversification
  • Reading comprehension - ensure that you draw the most important information from the related lesson on stock market risk

Additional Learning

To continue learning about this stock market subject, check out the accompanying lesson titled Systematic & Unsystematic Risk: Definition & Examples. This lesson looks at the following goals:

  • Define diversification, risk and other key concepts in the lesson
  • Differentiate between systematic and unsystematic risk
  • Relate what you've learned in the lesson to real life stocks, such as Netflix
  • Explain how investors can protect themselves from excessive risk