Question

15 。

Systematic Risk is

	A.	the risk arising from the interconnectedness of banks leading to the recession in 2008
	B.	the same as unique risk
	C.	the risk from exposure to the market, marcoeconomic factors etc
	D.	eliminated totally if there are over a 30 stocks in your portfolio

16. Which of the following statistics is NOT meaningful for measuring risk/uncertainty?

	A.	Kurtosis
	B.	VaR
	C.	Median
	D.	Range

Answer 1

15.The correct answer is "C"

Systematic risk is the risk due to exposure in market, that is macroeconomic risk. If a particular market say brazil is performing badly, then all of the stocks listed in Brazil will perform badly, so it can't be avoided. An investor is rewarded for systematic risk, but not unsystematic risk, which is diversifiable.

16.The correct answer is the Median.

Median is the measure of central tendency or average return. Risk is referred to as the movement along with the central tendency. So all the other measures are a measurement of risk, but the Median is the average return. It defines what the stock has earned over a period on average.

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