Market risk and diversifiable risk.

business

Description

Description

For this assignment, you will write a 3-4 page essay on market risk and diversifiable risk, the differences between them, how these risks apply to a portfolio, and why understanding these risks is important for both investors and businesses.
Instructions

  • Review the attached grading rubric.
  • Open the attached document titled “Unit 2 – Essay …” and use as your working document.

Write a 3-4 page essay that answers the following questions:

1. Why is understanding market risk important to a stock portfolio? Consider using your own investment portfolio as an example.

2. How would diversifiable risk affect an investor’s potential investment mix?

3. How does risk and return relate to the market and diversifiable risk?

Writing Requirements

Your essay must be 3-4 pages long.

  • Your document must be double-spaced using a 12-point font with 1-inch margins and include your name at the top of the first page.
  • Review your document for errors, correct grammar, and formatting.
  • Use proper APA format and include citations for reference sources.
  • ·Sources must be written in the United States of America within the past 5 years

Instruction Files

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