Nonsystematic Risk: Nonsystematic risk results from unpredictable factors, such as poor management decisions, successful competitive products, or suddenly obsolete technologies that may affect the securities is . . . View Full Definition
Systematic Risk: Systematic risk, also called market risk, is risk thatís characteristic of an entire market, a specific asset class, or a portfolio invested in that asset class. Itís the opposite of the ris . . . View Full Definition
Risk Premium: A risk premium is one way to measure the risk you'd take in buying a specific investment. Some analysts define risk premium as the difference between the current risk-free return ó defined a . . . View Full Definition
Risk Premium Approach: A common approach for tactical asset allocation to determine the relative valuation of asset classes based on expected returns.