Systematic Vs Unsystematic Risk Explained In 5 Minutes

Ryan O'Connell, CFA, FRM discusses the topics related to Systematic Vs Unsystematic Risk in the following manner:

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Chapters:
0:00 - Diversification and Systematic Vs Unsystematic Risk
0:55 - Unsystematic Risk Definition
1:46 - Systematic Risk Definition
2:46 - Graph of Systematic Vs Unsystematic Risk

Systematic Risk is also known as Undiversifiable Risk, and Market Risk.
Unsystematic Risk is also known as Unique Risk, Diversifiable Risk, Company-Specific Risk, and Firm-Specific Risk.

*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.

[RyanOConnellCFA]

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[speedyturtle]

Your explanations are PERFECT!!! Easy to understand and putting them into context absolute sense

[oteppugo]

Thank you. I now understand their differences

[mandy-ld]

Thank you so much Ryan you really simplified this for me

[phillipjustineobaate]

Great teacher, teaching from known to unknown, simply.

[Frank_Ammerlaan]

Systematic risk can be diversified away by investing smaller amounts over time 😊 Thank you for your videos.

[ernestnjodzeven]

Thanks so much. Simple and easy to grasp

[kuchikirukya]

Great video, thanks for your lecture!

[newsjohnson]

Curious. Do you mean 30 securities as in 30 ETFs, 30 single stocks, or 30 assets including real estate and other investments? Thanks.

[investoracademy]

absolutely on point! Love it, thank you! :)

[williamrivera]

Hi Ryan. The Systematic and Unsystematic Risks Can be expressed in dollars amount from total invested? For example, if the amounts invested is $40, 000 and the percent of systematic risk computed is 2%, this is obtained Square the beta * Variance of the market. That means that ($40, 000 *.02=$800.00) or $800.00 cannot be diversified or viceversa if using the Unsystematic Risk would be the amount of dollars that can be diversified. I don't know if it is possible. Thank you

[enish]

Can you make clips on how to take advantage of CFA after mid-30s w/o financial career background?

[msb-hd]

Would it be correct to think of unsystematic risk as similar to the volatility of one individual asset while systematic risk is basically the same thing as beta?

[gauravbhayana]

can systematic risk be diversified by alternative investments or not because beta is market risk and alternative investments are non market illiquid investments right ?