Capital asset pricing model (part a) - ACCA Financial Management (FM)

Capital asset pricing model (part a) - ACCA Financial Management (FM)

Free lectures for the ACCA Financial Management (FM) Exam

Please go to opentuition to post questions to ACCA Tutor, we do not provide support on youtube.

[warmongerfenrir]

You're the best teacher in the world as of 2024.

[UFOpricey]

you absolute legend! wish I could buy you a pint

[questionmarks]

Example of airline very relevant these days. Thanks for the lecture

[blackm]

Thank you Sir, we can find that the Ukrainian Russian War Now is affecting the level of the Systematic Risk over some of the commodities.

[hetanshthakore]

can systematic risk be reduced by diversification among various sectors? eg Like you said that in order to remove unsystematic risk you have to invest in various companies so even if 1 airline fails others will stay afloat

Can we use the same logic and diversify among various sectors like Accounting firms, and oil firms in order to reduce systematic risks?

And even cant we reduce systematic risks by doing fundamental risk mgmt analysis of various companies to see that which company is more exposed to forex changes in the same sector as compared to others eg We can say that although almost all accountants face low forex risk if the accountancy firm is just a small local mom and pop firm it will face even lower risk as compared to multinationals like PWC? and so we can remove such forex risk by investing only in small firms